Insurance Broker Gallagher Warns Clients to Avoid Red Sea After Houthi Tanker Attack

Published Jul 25, 08:39 AM UTC

Insurance broker Gallagher has advised shipping clients to avoid all Red Sea voyages after a tanker it insured was struck by Yemen's Iran-backed Houthi militia. The attack, part of a broader escalation, targeted two Saudi tankers attempting to bypass a Houthi blockade in the Bab el-Mandeb strait. One vessel caught fire and returned to port. Gallagher, a Lloyd's of London broker, is part of a syndicate now recommending against Red Sea transits, highlighting fears of a new permanent front in the Middle East conflict. The Houthi actions have effectively blocked Saudi oil exports via the Red Sea, previously a key alternative route after Iran's blockade of the Strait of Hormuz. Oil prices surged up to 16% in four days, with Brent crude briefly hitting $102 per barrel. Analysts warn the disruption could keep Brent above $100, as the Suez Canal becomes Iran's only export route, further straining global energy markets.