New Delhi, March 1 -- Insurers have moved to cancel policies and sharply raise premiums for vessels travelling through the Gulf and the Strait of Hormuz following the US and Israeli attacks on Iran, according to a report.

War risk underwriters submitted cancellation notices for ships operating through the key oil chokepoint ahead of trading reopening on Monday, brokers told the Financial Times, signaling heightened concern over rapid escalation after Iran launched retaliatory strikes on US bases across the region.

Insurance costs for vessels transiting the Gulf, previously around 0.25% of a ship's replacement value, could increase by as much as 50%, according to Dylan Mortimer, marine hull UK war leader at broker Marsh.

For a $100 mill...