Decision of US insurer not to provide additional 'war risk' coverage to vessel sunk by Yemeni group could have chilling effect on Haifa port

In early July, Yemen’s Houthis launched a sophisticated and multi-pronged attack on The Magic Seas and The Eternity C, two Greek-owned and Liberian-flagged vessels in the Red Sea. Both vessels were sunk by the group, officially known as Ansar Allah.

The attacks were the largest in scope, and firepower, since the Houthis began targeting ships in the Red Sea in November 2023 in what they say is solidarity with besieged Palestinians in the Gaza Strip.

“There is a big discussion in the market right now whether insurers should cover vessels with even indirect connections to Israel,” one of the shipping sources told MEE. “This is not good for Israel. The optics are damaging. The Israelis have spoken to insurers and shipping companies.”