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Persian Gulf Oil Shipments Cost More Than $500,000 to Insure

  • Insurance costs for both tankers and their cargoes have surged
  • Six oil and fuel tankers have been attacked since early May
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The cost of insuring Middle East oil shipments is soaring as tensions mount in a region responsible for about a third of all seaborne petroleum.

So-called war risk premiums for a standard oil cargo from the Persian Gulf and the tanker hauling it can now cost upwards of $500,000, according to people familiar with the insurance market. Earlier this year, the same premiums would have cost owners less than 1/10 of that.