A leading UK insurer has said that cover is still available for ships transiting the Strait of Hormuz, despite the shipping industry’s claims that policies are being revoked or having prices hiked.
Elsewhere, the UK government is touting tariff removal from wind energy infrastructure components as a win for manufacturers and green goals.
Insurers insist they will cover Hormuz-bound ships
A leading UK insurance firm has hit back at claims the sector has abandoned coverage for oil vessels during the Middle East conflict.
Lloyd’s of London’s head of underwriting Patrick Davidson said the firm was still insuring “basically anyone who asks”.
Speaking to the FT, Davidson said that the reduction in ships transiting through the Strait of Hormuz was more a question of safety.
“All the insurers at Lloyd’s are still quoting business, and will still provide cover to basically anyone who asks.”
The wider insurance industry has faced criticism for cancelling and hiking policies following the US-Israeli military campaign in Iran began last weekend.
On Friday, US President Donald Trump announced a US$20bn reinsurance scheme to encourage ships to return to the region, giving credence to the idea that traditional insurers are reluctant to provide cover. Trump told shipowners to “show some guts” and transit the strait despite ongoing attacks.
Amid accusations of price gouging, insurers have claimed that they’re only responding to the heightened risk of physical damage during voyages, as well as an increase in the vessels’ value as a result of the rising cost of oil – the cargo which many are transporting.
It’s not only insurers and shippers reevaluating the risk involved in transiting the strait. The US Navy has been declining “near-daily” requests from the shipping industry for military escorts, according to a Reuters report, saying that the risk of attack is too high.
Today, UK Maritime Trade Operations reported that two ships have been attacked in the strait, the second was hit by a “projectile”, resulting in a fire onboard.
Tariff removal for offshore wind components
Amid growing fears of energy price hikes stemming from the Middle East crisis, the UK government has shared news it says will benefit manufacturers of clean energy infrastructure.
The Department for Business and Trade (DBT) announced that, from 1 April, tariffs will be removed on 33 different goods used to produce offshore wind infrastructure.
In a press release published today, DBT writes that this will “enable British manufacturers to produce components at a reduced cost and allow reinvestment for clean energy sector growth”.
Referring to offshore wind as “the UK’s largest source of renewable energy”, the government says that this support for the sector will help build the UK’s energy security.
Clean energy was identified as one of eight high-potential growth industries within the government’s industrial strategy, published last year, with its own tailored sector plan for growth.
The plan outlines that, by 2035, the government aims to make the UK the “most attractive place in Europe” to invest in clean energy, create “hundreds of thousands of good jobs” in the sector, as well as grow exports in all “frontier clean energy industries”, which includes wind, nuclear fission, carbon capture, hydrogen and heat pumps.
Elsewhere in the headlines
- Sulphur is the latest commodity to be hit by Middle East crisis, According to an FT report, disruption that could impact products from microchips to fertiliser
- Iceland’s foreign minister Þorgerður Katrín Gunnarsdóttir claims country could be next to join EU, if voters approve talks starting in August referendum, Politico reports
- Dame Caroline Wilson has been appointed as the UK’s Ambassador to the EU, replacing Lindsay Croisdale-Appleby. She will take up her appointment in August 2026
Yesterday in trade
- G7 finance ministers expressed concern about rising oil costs but fell short of agreeing to release strategic reserves
- UK chancellor Rachel Reeves is reportedly considering reversing the planned fuel duty hike slated for later this year
- China advanced its global trade surplus ahead of a meeting between leader Xi Jinping and US president Donald Trump
