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The war risk insurance premiums for maritime carriers associated with Saudi Arabia in the Red Sea have risen significantly, reaching approximately 3% of the vessel's value—about three times the levels seen a few weeks ago. This increase is hindering the use of the Yanbu port as an alternative to export oil away from the Strait of Hormuz. The insurance costs for a voyage from Yanbu could reach up to $3 million, with overall expenses rising due to threats from the Houthis and Saudi Arabia's efforts to restore oil flows through the East-West pipeline, which had been halted after drone attacks. These financial and security challenges are affecting oil supplies and increasing logistical costs, as Riyadh endeavors to organize local insurance solutions against the risks of maritime conflict.
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