Insurance broker Gallagher had organised cover for one of two tankers struck by Houthi missile attacks in the Red Sea last week, City AM has learned.
The Lloyd’s of London broker, one of the so-called Big Five brokers dominating the maritime and cargo sectors, arranged insurance for the affected vessel as part of its specialist marine operations.
Two people familiar with the matter confirmed Gallagher’s involvement, noting the New York-listed group did not underwrite the policy itself and therefore faces no direct payout liability.
The Iran-backed Houthi militia, operating out of Yemen, launched missile attacks on two separate tankers attempting to navigate the Bab al-Mandab strait in the Red Sea, with Saudi state media confirming one vessel caught fire.
The attacks represent a significant escalation in the Middle East conflict, with the Houthis effectively mirroring Iran’s own blockade strategy in the Persian Gulf’s Strait of Hormuz.
Saudi Arabia, which had been rerouting oil through a vast pipeline from its east coast to the Red Sea to circumvent the Hormuz blockade, now finds both export routes severely compromised.
The blockade means Saudi Arabia is blocked from exporting oil into the Arabian Sea via both the Red Sea and the Persian Gulf, dealing a severe blow to the petrostate’s energy revenues.
James McCormick, research director at Cavendish, said the Houthis’ move represents a major blow to Saudi Arabia’s oil and gas export capacity, with wider consequences for global energy markets.
“The market is increasingly pricing a broader kind of logistic delivering supply shock,” McCormick told City AM, adding that “at the moment this is keeping Brent vulnerable to sustained trading over $100 a barrel.”
Oil prices have reflected that pressure, rising as much as 16 per cent between Monday and Thursday, with Brent crude peaking at $102 a barrel before easing back through Friday.
The Suez Canal, running through Egypt into the Mediterranean Sea, is now the only avenue through which Iran can export its vast oil production, hampering trade volumes with countries including India and Pakistan.
A spokeswoman for Gallagher said the group remains willing to provide cover for vessels operating in the region, adding: “Whether transit is safe is a decision made by the master of the ship and associated parties.”
“As a specialist marine insurance broker our role is to provide cover to ships looking to travel in the area and Gallagher is able to provide insurance for ships travelling in the Red Sea and other high risk areas,” the spokeswoman added.