First repercussions of the Yemeni ban on Saudi Arabia… Increase ship insurance fees

Follow-ups – Al-Khabar Al-Yemeni:

Ship insurance premiums in the Red Sea recorded a notable increase hours after the Yemeni Armed Forces announced the naval navigation ban on Saudi Arabia, the first direct reflection of the decision on maritime transport associated with the Kingdom, according to what Reuters quoted from informed sources.

This development comes after a Bloomberg report indicated that the Sana’a decision threatens millions of barrels of Saudi oil transported through the Red Sea, as the Kingdom relies on this vital passage to export a large part of its production to Western markets.

The Red Sea is one of the most important maritime passages for global trade, as a large percentage of shipping traffic between Asia and Europe passes through it. Observers believe that the increase in insurance costs represents the first economic repercussions of the Yemeni decision, with expectations of wider impacts on navigation and international trade, coinciding with continued tensions in the Strait of Hormuz.