Houthi attacks, reportedly backed by Iran, have led to a surge in war-risk insurance premiums for vessels navigating the southern Red Sea. The strategic Bab el-Mandeb Strait, a critical passage for global oil transportation, faces potential closure, which could severely disrupt worldwide supply flows. These developments have fueled market concerns about a potential spike in crude oil prices. Rising insurance costs reflect insurers’ heightened risk assessments in the affected maritime region.
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