Houthi attack on 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 last week was insured by Lloyd's of London broker Gallagher, according to sources. The Houthis, an Iran-backed militia operating in Yemen, launched missile attacks 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 Iran has already blockaded the Strait of Hormuz for five months, preventing Saudi oil exports via the Persian Gulf. The Red Sea blockade now blocks Saudi Arabia's alternative export route via a pipeline to the Red Sea. Oil prices spiked 16% in four days, with Brent crude reaching $102 a barrel. Gallagher, one of the Big Five insurance brokers, did not underwrite the policy and faces no major payout, but continues to offer cover for ships transiting the Red Sea. The Suez Canal remains the only open route for Iranian oil exports.