Red Sea Oil Tanker Attack to Possibly Increase Insurance Costs and Cause Trade Disputes
By Thea Felicity
Aug 22, 2024 09:14 AM EDT
Water is sprayed by fire brigades toward the smoke and flames rising from a Saudi Aramco oil facility in Saudi Arabia's Red Sea coastal city of Jeddah, on March 25, 2022, following a reported Yemeni rebels attack. (Photo : -/AFP via Getty Images)
An attack off the coast of Yemen has caused a Greek-flagged oil tanker, the Sounion, to be set on fire and drifting alone in the Red Sea. According to CNBC, the vessel, operated by Delta Tankers, was struck by gunfire from two small boats approximately 77 nautical miles west of the Yemeni port of Hodeidah.
The tanker lost engine power and was rendered "under command," resulting in a massive fire onboard.
Fortunately, all 25 crew members were safely evacuated and received naval support from the EU's naval mission Aspides, which also destroyed an unmanned surface vessel that threatened the Sounion.
The attack has raised concerns about environmental safety at sea and higher insurance costs.
Per Reuters, the UK Maritime Trade Operations agency said the Sounion was slightly damaged but now poses a danger to navigation and the environment. The ship was carrying 150,000 tonnes of crude oil, and the fire could lead to an oil spill on this important shipping route.
Greece's Minister of Shipping and Insular Policy, Christos Stylianides, condemned the attack as a "flagrant violation of international law" and a serious threat to international navigation.
Besides insurance and environmental concerns, the attack has also disrupted shipping in the Red Sea, an important route for trade between Europe and Asia-Pacific. Although this incident hasn't affected oil prices in the long-term, it shows the risks for ships in this area.
Splash 247 shared that Delta Tankers is now trying to move the Sounion to a safer place for inspection and repairs.
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