Red Sea Ship Attacks Pose Threat To West Asian Crude Oil Supply
The rising attacks on ships, especially oil tankers, in and around the Red Sea may cause a temporary hindrance to India's petroleum exports from West Asia, given the recent developments.
Concerns were raised after two India-bound warships were targeted by drones during the Israel-Hamas conflict, as outlined by media reports.
Late on Saturday, Iran-aligned Houthi rebels are said to have launched a drone strike on the crude oil tanker MV Sai Baba, which is registered under the flag of Gabon and is carrying 25 Indian crew members.
The United States Central Command (CENTCOM) reports that the incident happened in rebel-controlled territory, but thankfully no injuries were reported.
MV Sai Baba, certified by the Indian Register of Shipping, was en route to India, adhering to international law requiring merchant ships to register in a host country.
The US Central Command's report followed another attack on the merchant vessel MV Chem Pluto, which was hit by a suspected drone in the Arabian Sea. This vessel, with around 20 Indian crew members, caught fire about 217 nautical miles off the Porbandar coast.
The fact that most oil volumes pass through the affected waters makes these instances significant. The government is keeping a careful eye on the situation and is aware that these kinds of attacks may have an effect on the short-term flow of crude oil from West Asia.
Furthermore, as shipments from Europe are choosing to take the longer route around Africa and the Cape of Good Hope rather than the Red Sea through the Suez Canal, shipping costs are predicted to increase even more.
