Increasing ship insurance costs in the southern Red Sea
The cost of insurance for ships in the southern Red Sea has increased due to the targeting of two Saudi oil tankers by the Sana'a forces. Risk premiums for war-related coverage for voyages through the area have doubled to more than 1% of the vessel's value, compared to 0.75% before the escalation and 0.3% last week. Additionally, insurance rates for ships anchored in Saudi ports and operating in connection with Saudi Arabia have risen to 3% for journeys from Jizan and Shiqaiq ports, near Yemeni territory, and the Bab el-Mandeb Strait. This has led to a rise in oil prices, with Brent crude reaching its highest level in two months after climbing by $5.83, to $99.90 per barrel, marking the fifth consecutive day of gains.
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