Saudi Arabia’s forced closure of major pipeline puts marine war risk back in the spotlight

Brent crude was trading above $104 a barrel earlier today. Capital Economics estimated that a serious, sustained hit to the pipeline, combined with the Houthis’ recent seizure of Perim Island and advances toward the Bab al-Mandeb strait, could push Brent toward $120 a barrel. A move like that flows through to fuel costs, freight rates and, eventually, claims costs across commercial auto, marine cargo and property lines carried by US insurers.