Iranian oil tanker ships have been stranded and damaged due to the ongoing conflict with Iran, which has closed navigation through the critical waterway and has prompted Asian governments and refiners to assess oil stockpiles. As a result, marine insurers are cancelling war risk coverage for vessels and oil shipping rates are expected to rise further. Companies including Gard, Skuld, NorthStandard, the London P&I Club and the American Club have announced their cancellations, which will take effect from March 5. Spot shipping rates from the Middle East to Asia, more commonly known as TD3C, have nearly tripled since the start of 2026. The spot rate for hiring a large crude carrier on the key Middle Eastern to China route on Monday was about 4% higher than on Friday, near W225 on the Worldscale industry measure or equivalent to at least $12 million.