Tanker earnings are unlikely to receive a boost from the escalation of tension between the UK and Iran even as insurance premiums will be poised for further increases, according to market participants.

Following Iran’s seizure of the UK-flagged product tanker Stena Impero (built 2018) last Friday, the UK government has urged all British vessels to avoid operating in the Strait of Hormuz.

Several analysts point out earnings would see little impact from the withdrawal of British tonnage, which accounts for a small portion of the trading fleet.