Shipping Companies Begin Diverting Vessels Away From Middle East

Insurance companies are terminating war risk coverage for vessels in the region.

A boat approaches the St Kitt's and Nevis-flagged container ship Marsa Victory while cruising in the waters of the Strait of Hormuz off the coast of Khasab in Oman's northern Musandam peninsula on June 25, 2025. Photo by Giuseppe Cacace/AFP

Major shipping companies have announced they are diverting their vessels away from Middle Eastern sea routes amid the ongoing conflict in Iran, with some operators opting to go around the Cape of Good Hope in South Africa.

The U.S. and Israeli militaries launched coordinated strikes on Iran on Feb. 28, with Tehran retaliating against its neighboring Gulf nations.