By Abbas Nazil
Security in the Red Sea and Gulf of Aden has plunged to alarming levels following a series of devastating attacks on commercial vessels by Yemen’s Houthi rebels, reigniting global fears of escalating conflict and severely impacting maritime trade through the Suez Canal.
The attacks, which occurred on July 6 and 7, targeted two Liberian-flagged, Greek-operated dry bulk carriers—Magic Seas and Eternity C—resulting in the sinking of both ships, loss of life, and renewed pressure on global shipping routes.
The assault on Magic Seas marked the Houthis’ first commercial vessel strike in 2025. The group used a coordinated attack involving drones, missiles, and rocket-propelled grenades.
A video released by the Houthis shows simultaneous hull explosions, believed to be intentional efforts to sink the vessel.
The crew was forced to abandon ship, with rescue efforts hampered by the intensity of the assault.
The following day, Eternity C was attacked about 50 nautical miles southwest of Hodeidah, Yemen.
This second strike involved sea drones and small boats carrying rocket-propelled grenades.
The vessel was critically damaged and ultimately sank. A rescue team from Seagull Maritime, responding under the Safety of Life at Sea (SOLAS) convention, attempted to recover crew members, but arrived to find empty life rafts and no crew in the surrounding waters.
Out of the ship’s crew, 16 remain missing, five have been rescued, and four are presumed dead and still onboard the sunken vessel.
These attacks have sparked fears that hopes for the global merchant fleet to resume Suez Canal transits may be dashed for the foreseeable future.
According to data from Jefferies, vessel traffic through the Suez Canal in 2025 has plummeted by 55% compared to 2023.
The decline is even more severe in certain shipping sectors: containership transits have dropped by 90 percent, liquefied natural gas (LNG) carriers by 80 percent, and liquefied petroleum gas (LPG) carriers by 72 percent.
In response to the growing risk, global insurers have raised war risk premiums significantly. Insurance premiums have surged from approximately 0.4 percent to one percent of a vessel’s value, effectively more than tripling costs for shipping companies.
For a ship valued at $100 million, the cost of insurance coverage has risen from roughly $300,000 to as high as $1 million per voyage, according to insurance data from Marsh McLennan.
The dual attacks mark a major escalation in maritime insecurity in the region and highlight the Houthis’ evolving capabilities and continued intent to disrupt global commerce.
The Red Sea, a critical artery for global trade linking Europe with Asia, is now facing one of its most serious threats in recent memory.
As nations and shipping companies reconsider transit routes and security protocols, the risk of broader conflict and prolonged disruptions in the global supply chain continues to rise.
