Heightened tensions between Iran and Israel are expected to increase freight charges and insurance premiums for shipping vessels on global routes. Ships bound for western European countries and the US are particularly at risk. Freight rates have already risen by about $100 per container for ships going through the Red Sea due to disruptions and capacity constraints. War risk insurance premiums, which were previously around 0.05% of the insured value of the vessel, have now increased to between 0.75% and 1%.