Insurance costs for ships navigating the Red Sea have nearly doubled following a recent attack on the Greek-flagged tanker Sounion by Yemen’s Houthis. The vessel, which appears to be leaking oil, has heightened environmental concerns and increased war risk premiums from 0.4% to up to 0.75% of the vessel’s value. The Houthis, aligned with Iran, have escalated their attacks since November, claiming solidarity with Palestinians. They have sunk two vessels, seized another, and caused fatalities among seafarers. The recent strike on the Sounion involved multiple projectiles and led to a fire onboard, with the vessel carrying one million barrels of crude oil. Insurance rates surged significantly after the attack, with some underwriters now refusing coverage in the region. The European Union’s Aspides naval mission is exploring protective measures, including potential towing of the tanker.
