Insurers Halt Coverage for Saudi-Linked Ships in Red Sea Amid Houthi Blockade

According to Solid Intelligence, insurers have ceased providing war-risk coverage for ships with Saudi connections in the Red Sea due to the ongoing Houthi blockade. The Iran-aligned Houthi movement's targeting of commercial shipping routes has raised threat perception in the region, prompting insurance providers to withdraw or restrict coverage rather than simply increase premiums. This decision reflects heightened risks in the Red Sea and Bab al-Mandeb, critical chokepoints for global trade. Prediction market pricing indicates increased concern, with YES odds for zero ships transiting the Strait of Hormuz by July 31 rising to 7.9%.
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