War risk insurance prompts increase following Red Sea ship attacks

(MENAFN) In response to a series of attacks on ships in the Red Sea, insurance premiums covering war risks have seen a notable increase, according to sources from the navigation and insurance sectors as reported by Reuters on Monday. The attacks occurred on Sunday, targeting three commercial vessels in international waters in the southern Red Sea. These incidents have raised concerns about heightened risks to commercial navigation in the region.

The recent attacks are part of a broader trend of escalating hostilities in Middle Eastern waters since the onset of the conflict between Israel and Hamas on October 7. The U.S. military confirmed the attacks on Sunday, attributing them to international waters in the Red Sea. The Yemeni Houthi group claimed responsibility, asserting that drone and missile attacks targeted two Israeli ships.

Jacob Larsen, head of maritime safety and security at Bimco, expressed the view that the Houthi group seems inclined to target any sea vessels with links to Israel, regardless of the strength of those connections, posing a potential risk of collateral damage to non-Israeli individuals such as crew members.

Contrary to the Houthi claim, Israeli army spokesman Daniel Hajari denied any connection between the mentioned ships and Israel. The U.S. Central Command also clarified that the three attacked ships had affiliations with 14 distinct countries. As tensions persist and maritime security becomes increasingly complex, the situation underscores the growing challenges faced by the shipping industry in the region.


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