Iran US Airstrikes: Will war risk insurance premiums rise for vessels in Middle East? Here's insurance costs for ships passing through Gulf region as oil companies remove foreign staff from Iraq
Synopsis War risk insurance premiums for Gulf shipping have increased after US airstrikes on Iran. Oil firms BP, Eni, and TotalEnergies are evacuating foreign staff from Iraqi oilfields. Iraq's oil output remains stable. Chinese and Russian companies have not changed their operations. Costs for shipping are rising sharply. Insurance costs for ships passing through the Gulf region have increased after US strikes on Iran's nuclear sites. Oil companies are removing foreign staff from Iraq, but production remains steady.
ADVERTISEMENT War risk insurance for vessels entering the Middle East Gulf has risen to 0.5%. Last week, the rate was between 0.2% and 0.3%. The increase followed US military action against Iranian nuclear facilities. Sources from the insurance industry confirmed this to Reuters and The Insurer.The premium rise affects the total cost of a seven-day journey through the Gulf. The premium is calculated based on the ship's value. The increase adds tens of thousands of dollars per day to the overall expense. Each ship is evaluated individually by underwriters, but 0.5% was a common rate as of Monday.
Also Read: World War 3 begins? After Iran, Israel, US, Yemen, now Saudi Arabia, Qatar and Iraq get embroiled in conflict while Kuwait, Bahrain and the UAE close airspace. More nations may join either side soon. See what's happening now and who may be Iran's next target
BP, Eni and TotalEnergies have begun removing foreign staff from oilfields in Iraq. The Basra Oil Company confirmed this action. These companies operate in different parts of Iraq's southern oilfields. Iraq shares a border with Iran, where tensions have grown after recent military actions.Despite evacuations, oil production in Iraq is stable. Exports from the southern oilfields remain at 3.32 million barrels per day. Two officials from Iraq's oil industry confirmed this. Basra Oil says the removal of foreign staff has not affected production levels so far.
ADVERTISEMENT
Also Read: NYC Mayor Race: Who is Zohran Mamdani and what is his connection with India? Here's why is he making headlines
BP has pulled out foreign workers from the Rumaila field. Italy's Eni cut staff at the Zubair field from 260 to 98. Those who remain continue to work with local teams. A spokesperson for Eni called the move a precaution and said the company is watching the situation closely.
ADVERTISEMENT
TotalEnergies has evacuated 60% of its foreign workers. The company has not commented publicly. Basra Oil says production is not affected. Chinese-run oilfields like West Qurna/1, Siba, and Faihaa are operating without any staff reductions. Russian company Lukoil has also reported no disruptions.
ADVERTISEMENT Why have insurance premiums for Gulf shipping increased?
The premiums rose due to US strikes on Iran and concerns over shipping risks through the Strait of Hormuz.
Is Iraq's oil production affected by staff evacuations?
No, Iraq's oil output continues normally despite the temporary evacuation of some foreign personnel.
(You can now subscribe to our Economic Times WhatsApp channel)
(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.)
Download The Economic Times News App to get Daily International News Updates. Iran US Airstrikes: Will war risk insurance premiums rise for vessels in Middle East? Here's insurance costs for ships passing through Gulf region as oil companies remove foreign staff from Iraq
Iran US Airstrikes: Will war risk insurance premiums rise for vessels in Middle East? Here's insurance costs for ships passing through Gulf region as oil companies remove foreign staff from Iraq Musk's lawyers say he doesn't use a computer — despite dozens of his own laptop posts proving otherwise
Musk's lawyers say he doesn't use a computer — despite dozens of his own laptop posts proving otherwise Marjorie Taylor Greene sounds the nuclear alarm, warns Trump is dragging America straight into World War III
Marjorie Taylor Greene sounds the nuclear alarm, warns Trump is dragging America straight into World War III Iran Israel war: Will Qatar, UAE, Saudi Arabia, Arab league, Gulf countries now join US, Tel Aviv against Tehran?
Iran Israel war: Will Qatar, UAE, Saudi Arabia, Arab league, Gulf countries now join US, Tel Aviv against Tehran? Hailey and Justin on the verge of divorce? Bieber's cryptic silent treatment post raises eyebrows
Hailey and Justin on the verge of divorce? Bieber's cryptic silent treatment post raises eyebrows Iran sleeper cell threat hits U.S. soil after base attack? Trump's sudden G7 exit linked to terror warning, reports say
Iran sleeper cell threat hits U.S. soil after base attack? Trump's sudden G7 exit linked to terror warning, reports say Common sense absent: Judge rejects Trump admin's push to jail Kilmar Abrego Garcia before trial
Common sense absent: Judge rejects Trump admin's push to jail Kilmar Abrego Garcia before trial World War 3 begins? After Iran, Israel, US, Yemen, now Saudi Arabia, Qatar and Iraq get embroiled in conflict while Kuwait, Bahrain and the UAE close airspace. More nations may join either side soon. See what's happening now and who may be Iran's next target
World War 3 begins? After Iran, Israel, US, Yemen, now Saudi Arabia, Qatar and Iraq get embroiled in conflict while Kuwait, Bahrain and the UAE close airspace. More nations may join either side soon. See what's happening now and who may be Iran's next target Shocking accusation: JD Vance hints Iran hid Uranium after alleged tip-off — from Donald Trump?
Shocking accusation: JD Vance hints Iran hid Uranium after alleged tip-off — from Donald Trump? Iran strikes US base in Qatar, Saudi airspace closed — WWE Night of Champions now hanging by a thread
NEXT STORY
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
24 minutes ago
- Mint
Chinese EV major BYD to roll out first car assembled in Pakistan by 2026
BYD, the Chinese electric vehicle maker, is planning to launch its first car assembled in Pakistan by August 2026. The world's largest EV maker aims to capture growing demand for electric and plug-in hybrid vehicles in Pakistan. The automaker has been expanding rapidly outside its home market, where it is in a strong price war. The Pakistan assembly plant addresses rising demand from emerging markets and allows the company to take advantage of incentives offered by the Pakistani government. The plant has been under construction since April near Karachi in a partnership between BYD and Mega Motor Company, a subsidiary of Pakistani utility Hub Power, Danish Khaliq, vice president of sales and strategy at BYD Pakistan, told Reuters. Initially, the facility would have the capacity to produce 25,000 units a year on a double shift. It will start by assembling imported parts, with some local production of non-electric components, said Khaliq. He added it would initially produce vehicles for the domestic market, with potential to export to right-hand drive countries in the region depending on freight costs and business economics. "We do not foresee excess capacity in our system as demand in Pakistan will catch up," he also said. BYD is hoping that the market size of EVs and plug-in hybrid cars in Pakistan would grow three to four times in 2025 from around 1,000 total units in 2024. The automaker is targeting a 30-35 per cent share of the segment. The carmaker will launch its Shark 6 plug-in hybrid pickup truck in Pakistan on Friday. China's MG already sells a PHEV SUV, while rival Haval is set to join the segment soon. China's BYD will delay mass production at its new electric vehicle factory in Hungary until 2026 and will run the plant at below capacity for at least the first two years, Reuters reported, citing sources. At the same time, China's No. 1 automaker will start making cars earlier than expected at a new plant in Turkey where labour costs are lower, and will vastly exceed its announced production plans, one of the sources said. Shifting production away from Hungary in favour of Turkey would be a setback for the European Union, which has been hoping that its tariffs on EVs made in China would bring in Chinese investments and well-paid manufacturing jobs.
New Indian Express
an hour ago
- New Indian Express
Spy in Silicon Valley: Chinese-American admits to stealing classified US military tech
A Chinese-American dual national has pleaded guilty to stealing classified US defence technology used to detect nuclear launches and track ballistic missiles, among other capabilities. According to the US Department of Justice (DOJ), 59-year-old Chenguang Gong, from San Jose, California, admitted guilt to one count of theft of trade secrets and remains free on a $1.75 million bond. The DoJ says Gong's actions caused an intended economic loss of more than $3.5 million. He faces a maximum sentence of 10 years in prison, with sentencing set for 29 September. DOJ prosecuters say Gong had transferred over 3,600 files from a Los Angeles-area research and development firm, where he was briefly employed last year, to personal storage devices. The files included blueprints for advanced infrared sensors intended for use in space-based systems to detect nuclear missile launches, as well as to track ballistic and hypersonic missiles. Other documents stolen by Gong pertained to sensors designed to equip US military aircraft with the ability to detect incoming heat-seeking missiles and deploy countermeasures such as jamming the missiles' infrared tracking systems. Gong had been hired in January 2023 as a design manager overseeing application-specific integrated circuits (ASICs) for infrared sensors. Between 30 March and 26 April 2023, the DOJ said he copied over 3,600 files from his work laptop to personal devices, including more than 1,800 after he had accepted the rival job. Many documents were labelled 'Proprietary Information' and 'Export Controlled.' The files contained proprietary information related to advanced readout integrated circuits used in missile launch detection systems and low-visibility threat tracking in military aircraft. Some files outlined blueprints for 'next-generation' sensors capable of identifying low-observable targets with enhanced survivability in space, along with engineering schematics for cryogenic sensor housing. Officials described the stolen data as some of the company's most valuable trade secrets, worth hundreds of millions of dollars. Separately, between 2014 and 2022, the accused had submitted several applications to Chinese state-run 'Talent Programmes' designed to recruit experts in sensitive fields. The DOJ said Gong sought to develop military-grade analogue-to-digital converters and low-light image sensors for night-vision systems. In one 2020 application, Gong submitted a video referencing proprietary sensor models from a defence firm he had previously worked at. Prosecutors also cited a 2019 email in which Gong said he had 'taken a risk' by participating in the programmes due to his ties to the US defence industry but believed he could contribute to China's military chip design capabilities.
Time of India
an hour ago
- Time of India
Calcom piloting manufacturing EV chargers in India: Executive Director Abhishek Malik
Calcom Vision has begun assembling EV chargers in India as it tests the waters of the country's fast-evolving electric mobility landscape. The company, best known for its LED lighting and BLDC fan electronics, is now working with a client exploring partnerships with electric vehicle OEMs. 'This is a pilot,' says Executive Director Abhishek Malik . 'But if the demand builds up, EV chargers could become a serious line of business for us.' While the chargers are currently being assembled at Calcom's existing facilities, the move signals a broader strategic shift. The company is now moving from high-volume consumer electronics into more specialised, automotive-linked products. It also reflects growing interest among EMS players to align with the government's EV push and the rise of domestic demand for charging infrastructure. Still, Malik tempers the optimism with realism. 'We're taking a calibrated approach. The economics have to work, and the supply chain, especially for core electronics, still leans heavily on imports.' A shift from commodity to capability Calcom's entry into EV chargers follows its relatively successful pivot into BLDC fans. This category also leans heavily on electronics but allowed the company to build on its LED lighting expertise. 'We made the BLDC shift during the COVID period,' Malik recalls. 'Lights and fans share the same distribution channel, so it was a logical extension.' But the scale-up hasn't been easy. 'Unlike LED lighting, which got a strong push from the government and big procurement volumes, BLDC fan adoption has been slower. It's still a price-sensitive category,' he adds. Even so, the company sees both BLDC and EV-related electronics as the next growth curve. These are higher-value and higher-complexity segments that are more resilient to commoditisation. 'You can't build a future on price competition alone,' Malik says. 'Eventually you have to own the product and the design.' The PCB problem: China still wins That ownership, however, remains elusive for much of India's EMS ecosystem. Malik is frank when talking about the current state of local sourcing. 'Even with 30 per cent anti-dumping duty, Chinese PCBs are cheaper. That's the kind of scale they're operating at,' he says. While Calcom has made progress in localising mechanical parts like plastic mouldings, sheet metal, and enclosures, the company still imports around 38 per cent of its bill of materials. Most of that is semiconductors and PCBs. 'The freight cost, duty, and logistics delays still don't add up to enough of a gap to justify shifting fully to Indian suppliers. Unless the ecosystem scales, it won't change,' Malik adds. Design first, assembly later Malik is also critical of the tendency to equate electronics manufacturing with mere assembly. 'If you're not designing the product, you're not in control,' he says. 'We've got used to being a low-cost labour country, with five people doing what a machine and one engineer would do in China.' He believes the bigger hurdle isn't funding or infrastructure. 'There's enough money to invest in R&D. The intent is missing. Most EMS promoters aren't thinking long-term. They're focused on quick top-line growth.' In his view, this is where India consistently falls short compared to competitors like Vietnam, Taiwan, or even Malaysia. These countries not only scaled manufacturing but also invested early in talent and design ownership. PLI push The government's PLI schemes, especially the focus on component manufacturing under PLI 2.0, are steps in the right direction, Malik says. But the real test lies in execution. 'We spent two years chasing a PLI that never materialised because of a political change. That kind of uncertainty kills business confidence.' Even now, he says, India's EMS industry remains fragile. 'There are less than 20 serious EMS players who are truly investing in capability. The rest are still doing basic assembly.' Calcom has set up a new subsidiary to push exports, with a target of getting at least 5 per cent of its revenue from overseas markets this year. Focus markets include the U.S. and Europe, both of which are increasing scrutiny on China-dependent supply chains. For all the gaps he points out, Malik remains cautiously optimistic. 'India has missed the electronics manufacturing bus many times before. This is our narrow window, maybe ten years, to get it right.' That, he believes, means investing in engineers, not just operators. In automation, not just manpower. And in design IP, not just imported PCBs. 'If we keep looking at this as a cost game, we'll lose. It's about value, control, and resilience.' The EV charger pilot, he says, is a small but symbolic step. 'We're testing if we can do it. And if we can, we'll scale. But only if the numbers and the ecosystem make sense.'
