Red Sea shipping insurance costs double overnight after Houthi attack

The insurance cost of shipping goods through the southern Red Sea doubled for some companies on Thursday, after Yemen's Iran-aligned Houthis attacked at least one tanker overnight, sources said.

The Houthis said their forces had carried out missile and drone strikes on Saudi oil tankers, the Encelia and the Layla. This worsened the turmoil for shipping in the region, with the Strait of Hormuz essentially shut down. Maritime security sources confirmed the strike on the Encelia, off the coast of the southern Saudi port of Jizan, close to Yemen's border.

Reuters could not immediately confirm the attack on the Layla, but US President Donald Trump mentioned two attacks on Saudi tankers. On Monday, the Houthis declared a naval blockade against Saudi Arabia, opening a potential new front against the US in its war with Iran.