The cost of insuring ships transiting the Red Sea has surged, more than doubling since early September due to heightened risks from attacks by Yemen's Iran-backed Houthis. Following a series of over 70 attacks, including the sinking of two vessels and the seizure of another, war risk premiums have escalated to as high as 2% of the vessel's value, up from 0.7%. The Houthis have threatened to target ships linked to the UK and the US or those that have docked in Israeli ports, exacerbating the situation. Many smaller insurers have withdrawn from providing war coverage in this region, and those still willing to underwrite are becoming increasingly selective. The Greek-operated Sounion tanker, attacked in late August, exemplifies the risks as it carried approximately one million barrels of crude oil without causing an oil spill. Overall, the insurance market is reacting cautiously to the changing threat landscape in the Red Sea.