Maritime security in the Red Sea and Gulf of Aden has deteriorated sharply after Yemen’s Houthi rebels launched devastating attacks on two commercial vessels, raising alarm across the global shipping industry and triggering a steep surge in war risk premiums.

The Houthis released a video yesterday showing what appears to be the deliberate sinking of a Greek-owned dry bulk vessel, Magic Seas, using simultaneous explosive charges to breach the ship’s hull. As in earlier attacks, the vessel was seen foundering shortly after the blasts.

On July 6, the Liberian-flagged Magic Seas was attacked by Houthi forces, their first commercial ship targets this year, using drones, missiles, and rocket-propelled grenades. The assault forced the crew to abandon the vessel.

Just a day later, on July 7, the Eternity C, another Liberian-flagged, Greek-operated bulker, came under attack approximately 50 nautical miles southwest of Yemen’s Hodeidah port. The assault involved sea drones and small boats armed with rocket-propelled grenades. The vessel sustained significant damage, resulting in the deaths of at least three crewmembers and injuries to two others. The ship is currently adrift, with the remaining crew onboard.

The attacks in recent days are likely to push back any significant return of the global merchant fleet to the Suez Canal.

According to data from Jefferies, transits through the Suez Canal in 2025 are down 55% compared to 2023. The impact is even more stark in key shipping segments with containership transits down by 90%, LNG carriers down 80%, and LPG carriers down 72%.

The latest attacks have rattled global insurers, prompting a sharp increase in war risk premiums. Premiums surged from around 0.4% to 1% of a vessel’s value, effectively more than tripling the cost of cover. This means the cost of insuring a $100m vessel has jumped from around $300,000 to as much as $1m per voyage, according to data from insurer Marsh McLennan.

Both the Magic Seas and Eternity C are part of fleets that have called recently in Israel, something that has ensured they are a target for the Houthis.

Vanguard Tech, a maritime security specialist, urged shipowners to carry out consistent due diligence and robust risk assessments.

“As long as the conflict in Gaza persists, vessels with affiliations (both perceived and actual) will continue to face elevated risks. Incorporating affiliation checks as a routine part of regional transit planning is a prudent step for all stakeholders,” Vanguard Tech advised.