How London’s Insurance Firms ‘Closed’ the Strait of Hormuz

Everyone thinks Iran shut the Strait of Hormuz. That’s wrong. Iran didn’t block it—London insurers did. About 107 cargo ships pass through Hormuz each day. Last week, only 19 sailed. No missiles were fired. Insurers simply pulled coverage. Without insurance, ships can’t move and trade grinds to a halt. Three losers emerge. Iran loses most of its oil exports. China faces a dire energy squeeze—40% of its crude imports cross Hormuz. Gulf states like Saudi Arabia can’t reroute 20 million barrels a day. The real gatekeepers of global trade now are actuaries in London. They run risk models, not navies. When premiums soar, global shipping freezes. Modern geopolitics is steered by insurance systems, not just governments.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.