【Houthi Attacks on Saudi Refinery and Red Sea Port Raise Shipping Risks and Seaborne Coal Costs】

Yemen's Houthi movement said on August 9 that it had launched a drone attack on Saudi Aramco's Jazan refinery in Saudi Arabia, which has a crude processing capacity of around 400,000 barrels per day. Saudi Arabia's energy ministry said the resulting fire was later extinguished with no injuries, while no specific supply losses have been reported. The Houthis also launched missile and drone strikes on Yemen's Mocha port near the Bab el-Mandeb Strait, further increasing security risks for energy and commercial shipping in the Red Sea.

If shipping risks in the Red Sea continue to escalate, higher war-risk insurance premiums, bunker fuel costs and potential rerouting expenses could push up international coal freight rates and CFR landed costs.