LONDON (Dow Jones)–New European sanctions will limit coverage of Iranian oil ships by the Japan P&I Club, the club said Monday, as the measures start biting in Asia.
The club’s reinsurance program will be affected by the new European Union sanctions which “will impact [its members’] ability to make a recovery from Japan P&I as the Club is not able to pay out on claims in relation to which it can make no recovery from reinsurers,” the club said in a statement posted on its website.
However, “the Japan Club may continue to insure non-EU based members who transport Iranian crude oil” as long as the ships involved aren’t registered within the EU, the voyage is outside the jurisdiction of the EU and no EU nationals are involved, it said.
-By Benoit Faucon; Dow Jones Newswires
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Vessel transits at the Strait of Hormuz fell to seven on Thursday from 11 the previous day, preliminary ship-tracking data showed on Friday, well below the 10-day average of 15.
Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, in the biggest declared wave of tit-for-tat attacks on shipping by both sides since the start of the six-month-old war.
Iran said it will announce a new restricted zone in the Gulf in the coming days, along with maps of a new shipping corridor through the Strait of Hormuz, as a weekend exchange of strikes on shipping sent oil prices higher on Monday.
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