London's marine insurance market has expanded the zones marked as high-risk in the Red Sea amid the threat to Saudi-linked vessels by the Yemen-based Houthi group.
The Joint War Committee, which includes underwriting representatives from Lloyd's and the International Underwriting Association, made the revision in its latest update of the list of areas of perceived enhanced risk linked to hull war, strikes, terrorism and related perils shared on Wednesday.
The changes were made "on the northwest, by the Red Sea, south of Latitude 25.5 [degrees north], (not including Egyptian territorial waters)," the JWC advisory said.
The expanded high-risk zone now covers more of the Red Sea coast near Saudi ports, extending close to the port of Jizan. The update follows the strikes on Saudi vessels in the Red Sea by the Houthis, Reuters reported Thursday.
The JWC guidance influences war insurance costs, with even a small premium increase capable of adding hundreds of thousands of dollars to the cost of a seven-day voyage, the report said.
Risk premiums for Saudi ports north of Jizan, including Jeddah and the vital Yanbu oil terminal, have risen to 1% from 0.25% earlier this week, while premiums for voyages via the southern Red Sea have increased to 1%-2% of a ship's value from 0.3% before the Houthi announcement, the report added.
Meanwhile, Iran's Islamic Revolutionary Guard Corps has warned of retaliation on Thursday after overnight strikes by the US, multiple media outlets reported, citing an IRGC statement published by state media.
In a statement on Wednesday, the US Central Command said it "successfully completed a heavy wave of strikes" against Iran hitting dozens of IRGC targets, including military command centers, missile and drone facilities, coastal surveillance and defense sites, and maritime capabilities.