LONDON, July 30 (Reuters) — The marine insurance market in London has expanded the area in the Red Sea that it considers "high risk" due to recent attacks on ships by Yemen's Houthi movement. However, the waters around Egypt have not been included in this classification, according to an advisory issued on July 29.
The Joint War Committee, which includes members from the Lloyd’s Market Association and other representatives from the London insurance sector, provides guidance that is closely monitored and affects the decisions of underwriters regarding insurance premiums.
The new high-risk zone now covers more of the Red Sea coastline near Saudi Arabian ports, extending near the Saudi port of Jizan, as indicated in the advisory.
On July 20, the Iran-backed Houthis announced a maritime embargo against Saudi Arabia, introducing a new challenge for the U.S. and its allies in the ongoing conflict with Iran. This also led to increased attacks on tankers transporting global energy and other essential supplies, with incidents reported beyond the Gulf region.
“Two vessels linked to Saudi interests were attacked in the days following the Houthi announcement,” stated the Joint War Committee.
“The JWC has moved the notification line for the Red Sea northward to reflect this situation.”