Houthis strike Saudi tanker insured by Lloyd's broker Gallagher

Published Jul 25, 03:21 PM UTC

A Saudi oil tanker attacked by Houthi militants in the Red Sea was insured by Lloyd's of London broker Gallagher, according to sources. The Houthis, an Iran-backed militia, launched missile strikes on two Saudi tankers attempting to bypass a blockade in the Bab al-Mandab strait, causing one vessel to catch fire and return to port. The attack marks a dramatic escalation in the Middle East conflict, as Saudi Arabia is now blocked from exporting oil via both the Red Sea and the Persian Gulf due to Iranian and Houthi blockades. Oil prices spiked 16% during the week, with Brent crude reaching $102 a barrel. Gallagher, one of the Big Five marine brokers, did not underwrite the policy and faces no payout, but continues to offer cover for ships transiting the high-risk area. The Suez Canal remains the only route for Iranian oil exports, while Saudi Arabia's pipeline rerouting strategy is now compromised.