Strait of Hormuz P&I insurance fully withdrawn — effective commercial closure

The major P&I insurance clubs — including Gard, Skuld, Britannia, and the West of England — formally withdrew Protection and Indemnity coverage for Strait of Hormuz transits effective March 5. Without P&I insurance, shipowners cannot legally operate most vessels and cannot obtain cargo or hull coverage from secondary insurers. This effectively closes the strait to all but the most risk-tolerant state-owned vessels (China, India national tankers). 4 seafarers have already been killed and 3 tankers damaged since February 28. Tanker traffic has dropped to near zero — approximately 150 ships are anchored outside the strait. The strait normally carries 20 million barrels of oil per day (20% of global seaborne supply) and Europe's 12-14% LNG from Qatar. Brent crude is expected to push toward $170-180 on Asian market open. India, Japan, and South Korea — which receive 84% of Hormuz oil — have activated emergency reserves. The US Energy Secretary announced SPR releases will increase to 1.5M bbl/day.