OIL TANKER INSURANCE COSTS TO JUMP AFTER GULF ATTACKS

The cost of Insuring tankers to Ship Middle East crude will increase after a second spate of attacks on vessels in the region in just over a month. Two tankers were attacked in the Gulf of Oman last week just 32 days after four other carriers were targeted nearby. The region was designated as a listed area after these attacks, a classification that gives underwriters room to charge more on war risk Insurance.

DNK, the mutual Insurer that covered one of the Ships damaged recently says it will increase rate for war Insurance. Insurers provide war Policies that pay out the value of ships damaged or destroyed by acts of both terrorism and war.