War-risk insurance premiums for cargo ships navigating the Gulf are expected to level off as the ceasefire between the US and Iran offers a glimmer of regional stability. However, industry experts caution that a swift return to pre-conflict pricing is unlikely. Underwriters remain in a "wait-and-see" mode, requiring sustained evidence of de-escalation before they feel comfortable lowering the steep rates triggered by recent geopolitical volatility. While the initial truce provided a brief moment of calm, the volatility of recent days underscores why insurers are hesitant to make immediate adjustments.

Market analysts, including leaders from Policybazaar UAE and Lockton, suggest that while we may see some initial signs of improvement, a full market recovery will be a slow, methodical process. Because premiums for some vessels spiked by over 1,000 percent during the peak of tensions, underwriters are wary of unwinding these rates prematurely. Industry professionals believe it could take several weeks of confirmed stability to see meaningful progress, with a complete return to standard rates likely requiring months of sustained peace. Ultimately, the insurance sector is prioritizing caution over speed to ensure they remain protected against ongoing regional uncertainties.