KATHMANDU. Insurance costs for tankers loading oil from Saudi Arabia’s main Red Sea port have tripled in recent weeks. That has put new pressure on Saudi Arabia’s efforts to maintain crude oil supplies amid rising tensions in the region. <\/p>\n
Industry sources told Reuters that the war risk premium for Saudi-linked tankers visiting Yanbu has reached about 3 percent of ship prices. Rates were less than 1 percent in early July. The increase follows the decision by London Marine Insurance Market to declare waters near Bab al-Mandeb Strait as high risk after Yemen was attacked by Iran-backed Houthi rebels. <\/p>\n
For ports in the south, including Jizan, about 50 miles from the Yemeni border, the premium could now reach 7 percent, up from about 1 percent in July. This level is close to the 6 percent to 9 percent premium currently charged for ships crossing the Strait of Hormuz. <\/p>\n
For a large tanker traveling through Yanbu, 7 days of war-risk coverage can now cost about $3 million. That number could reach about $7 million through the southern Saudi port or Hormuz. That was at least $100,000 before the current conflict. <\/p>\n
Saudi Arabia has long considered the Red Sea route, supported by its east-west pipeline, to be a safer alternative to Hormuz. A drone strike earlier this month shut down that pipeline. That led to higher insurance costs. Unlike the situation in the Gulf, the U.S. is not providing the same military air coverage for ships in the Red Sea. \u2014Agency<\/p>\n","protected":false},"excerpt":{"rendered":"
KATHMANDU. Insurance costs for tankers loading oil from Saudi Arabia’s main Red Sea port have tripled in recent weeks. That has put new pressure on Saudi Arabia’s efforts to maintain crude oil supplies amid rising tensions in the region. Industry sources told Reuters that the war risk premium for Saudi-linked tankers visiting Yanbu has reached […]<\/p>\n","protected":false},"author":16,"featured_media":204236,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-317549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317549","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=317549"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317549\/revisions"}],"predecessor-version":[{"id":317550,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/317549\/revisions\/317550"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/204236"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=317549"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=317549"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=317549"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}