The marine war risk insurance market saw little change after parts of the Strait of Hormuz were closed for several hours on Tuesday due to "security precautions," three sources familiar with the matter told Reuters' The Insurer news service.
The semi-official Fars news agency reported that the strait was partially closed on Tuesday due to precautions related to ship safety while the Iranian Revolutionary Guard was conducting military exercises in the waterway.
Three market sources said that war risk insurance rates for marine transport in the Gulf and the volume of demand have not changed significantly due to the partial shutdown.
One source said that the premium on insurance prices in the Gulf region is currently in the range of 0.1 percent.
Tensions between Iran and he United States have escalated in recent days as the two countries engage in talks aimed at resolving their long-standing nuclear dispute.
US President Donald Trump on Friday welcomed a possible regime change in Iran and declared that a "great force" would soon arrive in the Middle East, as the US Department of Defense (Pentagon) sent a second aircraft carrier to the region.
Trump threatened to launch strikes against Iran if an agreement could not be reached, while Tehran vowed to retaliate, raising fears of a wider war.
