Energy insurance costs rise as Red Sea and Strait of Hormuz risks reshape Middle East oil and LNG flows

Rising geopolitical tensions in the Red Sea and recurring security concerns in the Strait of Hormuz are driving up insurance premiums for energy shipments, increasing operating costs for oil tankers and LNG carriers. Even without physical closures of key sea lanes, higher risk pricing is weakening the commercial viability of some routes and tightening effective deliverable supply of crude oil and liquefied natural gas. The result is a financial transmission mechanism that supports near-term energy prices without any change in production.