Insurance costs, security rules tighten for ships near Iran – Telegraph

Some London-based underwriters offering war risk insurance for ships on these routes now mandate specific security measures, according to the report, including a certain number of firearms, ammunition and onboard armed personnel.

The decision follows a July 7 attack in which Houthi forces in Yemen launched drones and rockets at a cargo ship off the Yemeni coast, killing two crew members.

London insurers reportedly incurred a 40-million-dollar loss due to the attack, The Telegraph said.

Shipping insurance companies consider the waterways near Iranian territory to be high-risk due to Iran-backed Houthi attacks in Yemen and ongoing tensions between Iran, Israel, and the United States.

The Telegraph also reported that vessels recently docked in Israel or sailing under certain flagged states are struggling to secure insurance, as they are considered more likely to be targeted.

Since the beginning of its term, the Trump administration designated the Houthis a foreign terrorist organization and launching a series of airstrikes aimed at disrupting the group’s attacks on shipping lanes and missile launches toward Israel.

Oman brokered a ceasefire in May between the United States and the Iran-backed group which held until the Houthis attacked and sank a cargo ship on July 6 in the Red Sea.