Recent attacks on commercial ships in the Red Sea and Bab el-Mandeb area have heightened maritime security risks, potentially leading to increased insurance costs. The attacks, linked to the Israel-Hamas conflict and supported by Iranian-backed Houthis in Yemen, pose threats to a vital oil trade chokepoint, through which about 10% of global seaborne oil flows. Navies and coast guards have issued advisories, with concerns that continued attacks may result in higher insurance premiums, particularly for ships associated with vulnerable nationalities. The article also highlights shifts in recommended shipping lanes and the impact on war risk premiums for different types of tankers, noting increased costs for those linked to Israel.

SOURCE:GOOGLE