The boss of insurer Aviva has cautioned that a lengthy conflict in the Middle East could send the cost of vehicle parts and repairs surging in an echo of the aftermath seen after Russia’s invasion of Ukraine.

Chief executive Amanda Blanc said the group has seen limited claims so far relating to the US-Israel war with Iran, but flagged the potential for claims costs to jump if supply chains are badly disrupted for a long time.

She said: “We have a good case study on this in terms of the Ukraine situation back in 2022 and the impact on the supply chain, which had an inflationary impact on vehicle parts and replacement vehicles.

“Obviously, if this goes on for a prolonged period of time, we would expect that this could have some impact, but to speak about this from an Aviva perspective, we are very well placed to manage that with our supply chain and our owned garage network.”

Ms Blanc added: “We will take action as necessary to make sure we look after our customers and price accordingly for any new inflationary impact.”

She said there had been “very limited” travel claims so far.

Ms Blanc added: “We have had calls from customers asking about whether they should travel and those sorts of things, and we are pointing them to the Foreign Office guidance on that.”

Full-year results from Aviva on Thursday showed annual earnings leaped 25% higher, while the firm also announced it was resuming share buybacks as it continues to benefit from its £3.7 billion takeover of Direct Line.

The group unveiled an earnings haul of £2.2 billion for 2025, up from £1.8 billion in 2024, including a £174 million contribution from Direct Line, helping the group hit its financial targets a year early.

Aviva unveiled a £350 million share buyback after putting these on hold due to the Direct Line deal, which completed last year.

Ms Blanc cheered an “outstanding performance”.

She said: “We have transformed Aviva over the last five years and whilst we have made significant progress, there is so much more to come.”

Artificial intelligence (AI) is also a big area of focus for the firm, according to Ms Blanc.

“We have clear strengths in artificial intelligence which are creating major opportunities to transform claims, underwriting and customer experience,” she said.

As tensions continue to heat up in the Middle East, concerns are raising about disruptions to one of the world’s most critical energy shipping routes, the Strait of Hormuz. Any disruption could significantly affect major oil-importing countries such as India, as the narrow Strait of Hormuz is central to global energy trade. The strait sees almost 20 million barrels of oil passing through each day, or about a fifth of the world’s consumption, pass through the route. The waterway also carries roughly 19% of global liquefied natural gas (LNG) shipments, making it a crucial corridor for energy-importing economies.A recent report by Goldman Sachs has flagged early signs of stress in the region. The report warned that tanker traffic through the Strait of Hormuz has already begun showing signs of disruption, with shipping firms, oil producers and insurers adopting a cautious approach following reports of damaged vessels in nearby waters.According to the firm, financial markets have already begun factoring in the geopolitical risk. Oil prices currently carry an estimated risk premium of $18-per-barrel, reflecting the potential market impact if energy flows through the Strait of Hormuz were disrupted for about a month.

Even is the oil facilities are not directly damaged, a shutdown of the shipping route could expose a significant portion of global supply. The report estimates that in an event of full closure, about 16 million barrels per day of oil flows could be affected, despite the availability of some pipeline routes designed to bypass the strait.And the risks are not limited to crude oil shipments with almost 80 million tonnes of LNG exports annually, much of it from Qatar, moving through the passage. Any prolonged disruption could tighten gas supply globally and potentially drive European benchmark gas prices back to levels seen during the 2022 energy crisis.

Asian economies stand among the most exposed to such disruptions. Major importers such as China, India, Japan and South Korea depend heavily on oil and LNG shipments that transit through the strategic corridor.While global oil inventories and spare production capacity could help cushion short-term shocks, the report warned that sustained disruption to Gulf shipping routes could trigger sharp volatility in global energy markets and push prices higher across oil, gas and refined fuel products.Market participants and governments are closely watching tanker traffic in the Strait of Hormuz, along with diplomatic and military developments involving the United States, Iran and Gulf nations, to assess whether the current disruptions remain temporary or escalate into a broader energy supply shock.