Middle East latest: Inferno at sea and shore

Iranian groups set two product tankers alight (pictured) late Wednesday into Thursday as attacks on commercial shipping and energy infrastructure intensified across the Middle East Gulf. Iraqi authorities identified the vessels as the 74,000 dwt Safesea Vishnu and the 50,200 dwt Zefyros. Monitoring group TankerTrackers.com said ship‑to‑ship transfers were observed off southern Iraq involving both tankers prior to the strikes.     In a separate incident early Thursday, a container vessel, the Chinese-owned, 3,200 teu Source Blessing, was struck north of Jebel Ali by an unknown projectile, suffering material damage. The crew were reported safe. The vessel is currently being used by the Gemini Cooperation.     The latest attacks take the number of commercial vessels targeted to 15 since the US/Israeli coalition started its war with Iran 13 days ago.

In Oman, the port of Salalah saw fuel storage tanks streaming flames (pictured below) and some terminals closed after what crews filmed as aerial drones attacking at a tank farm – the second strike on the facility since the war began.

The attacks compound a deepening navigation and insurance crisis. “The Strait of Hormuz remains ‘inaccessible’ now with the added risk of mines, however, Fujairah and Mina Al Fahal in Oman are still a vague possibility…The only certainty is uncertainty,” broker Fearnleys said, summarising market sentiment as owners reroute and lay up tonnage with close to a third of all VLCCs now at a standstill, according to estimates from SEB, a Scandinavian bank.

The widening strikes are prompting global ripples. “The Middle East sits at the crossroads of major global trade routes. Disruption in the region will ripple across global supply chains, with longer voyages, delays, and the rewiring of shipping networks to keep trade flowing,” said Joe Kramek, president and CEO of the World Shipping Council, liner shipping’s global lobby group.

Washington moved to shore up insurance capacity on Wednesday when the US International Development Finance Corporation announced Chubb will act as lead insurance partner for the government’s $20bn maritime reinsurance programme. Chubb will underwrite policies for eligible vessels with DFC providing reinsurance support, and additional American insurers lined up to expand capacity. Officials said more reinsurance partners may be named in the coming days.