Insurers Ditch Saudi-Linked Ships, Largest Oil Field Shut Down - Economist Chris Martenson (Video)

In this 29 July 2026 published video, host Mario Nawfal talks with Chris Martenson about how major maritime insurers have begun pulling war-risk cargo coverage for ships with any Saudi Arabian connections, while severe military escalations have knocked massive amounts of Saudi oil infrastructure offline.

Leading underwriters at Lloyd’s of London (including firms like Ascot and Navium) have notified brokers they are excluding ships with “Saudi touchpoints” from Red Sea war coverage. This exclusion follows targeted Houthi drone and missile strikes on Saudi-flagged oil tankers. Meanwhile, geopolitical conflict has simultaneously led to the preemptive shutdown of supergiant offshore oil fields and direct strikes on critical processing hubs.

Marine underwriters are shifting their stance from simply raising premiums to completely denying coverage for Saudi-related commercial voyages. Policies are being canceled for vessels flying the Saudi flag, carrying Saudi cargo, or even foreign-flagged ships that have historically docked at Saudi ports. With the Strait of Hormuz largely restricted due to broader regional conflict, Saudi Arabia had been relying heavily on its East-West pipeline to move oil out of Red Sea ports like Yanbu. The insurance freeze essentially compromises this vital alternative route. Devoid of war cargo insurance, vessels are increasingly being forced to divert away from the Red Sea, taking the significantly longer and more expensive route around the Cape of Good Hope.

The logistics crisis coincides with staggering production halts across Saudi Arabia’s energy sector. The massive Abqaiq oil processing facility, capable of handling up to 7 million barrels per day (bpd), was halted following localized attacks. Because the Strait of Hormuz blockade restricted export capacity, Saudi Aramco preemptively shut down its Safaniya (the world’s largest offshore oil field) and Zuluf fields, removing 2 million bpd of heavy crude production. On July 27, Aramco completely shut down its 400,000-bpd Jazan refinery on the Red Sea coast after a direct Houthi strike heavily damaged its gasification complex and tank farm. Repairs are tentatively expected to last until mid-August.

https://youtu.be/ZiYlPTDXi40