Saudi Shipping Faces Insurance Cancellations and Rerouted Oil Exports via Mediterranean

Marine insurers have begun cancelling coverage for vessels owned or operated by Saudi Arabia after a series of naval strikes by the Yemeni Armed Forces, warning that ships linked to Saudi interests now face record‑high premiums and doubled operational costs. Insurers are advising shippers to avoid the contested Red Sea passages and to seek alternative routes.

At the same time, Saudi oil exporters are increasing crude shipments through longer, costlier Mediterranean terminal routes to bypass the disrupted Red Sea corridor. The diversion adds significant freight and insurance expenses, pushes up refinery feedstock costs in Europe and Asia, and forces corporate finance teams to adjust working‑capital and risk‑management strategies. Both developments highlight the broader logistical and financial strain on Saudi‑linked shipping caused by the ongoing Yemeni conflict.