Shipowners are reluctant to risk crossing the Hormuz Strait even with insurance because of the high cost of the assets, according to Mr Mohamed Mahran, the CEO of Misr Insurance Company, the biggest general insurer in Egypt.
He added in an interview with Al Arabiya Business that the Strait of Hormuz is one of the most sensitive crossings for the insurance industry at present.
He pointed out that the announcement of the ceasefire last week led to a decline in oil prices and a movement in gold prices, but insurance prices did not change due to concerns.
He said that with developments regarding the status of the Strait happening very rapidly, shipping companies find it difficult to assess the possibility of transiting through the Strait.