On 6 July 2025, the Liberian-flagged, Greek-managed bulk carrier the 'Magic Seas' was attacked in a Houthi assault off the coast of Al‑Hudaydah. The vessel was hit by sustained small-arms and rocket-propelled grenade fire from speedboats, followed by missile-equipped drones and remote-controlled boats.
The attack led to fires and flooding aboard the ship and its 22-member crew were forced to abandon ship. While several were later rescued, at least four were killed and 14 others were still missing at the time of writing.
One day later, on 7 July, the Liberian-flagged, Greek-operated bulk carrier 'Eternity C' also came under attack in the southern Red Sea. It was targeted by coordinated sea drones and rocket-propelled grenade fire from Houthi-controlled forces. The ship sank on 9 July, with at least four crew members confirmed dead, approximately 10 rescued, and around 11 still missing at the time of writing.
These attacks represent a dangerous escalation in Houthi aggression against international commercial shipping, and are the first attacks in several months after a previous ceasefire brokered with the United States (US) in May 2025.
These incidents sent ripples through international shipping and insurance industries, with war-risk premiums increasing to approximately 0.4% to 1% of vessel value per transit, which can signify up to USD $1 million extra per voyage for high-value ships.
Insurance underwriters are increasingly reluctant to cover routes through this corridor, and many companies are diverting ships south around the Cape of Good Hope, adding approximately 10 days to journey times, significantly higher fuel costs, and downstream supply chain delays.
Counter naval and air operations
Since December 2023, the US led Operation Prosperity Guardian has deployed warships and aircraft to escort commercial vessels through the Red Sea and Gulf of Aden, in collaboration with international forces from the UK, Denmark and France.
Similarly, the EU's Operation Aspides, initiated in February 2024, provides defensive escorts and enhanced maritime awareness, but is prohibited from taking offensive action against Houthi forces.
Between March and May 2025, US and UK forces launched Operation Rough Rider, a combined air and naval assault targeting Houthi missile launchers, radar installations, and unmanned drone bases across Yemen - however as seen by the attacks against the Magic Seas and Eternity C have failed to halt attacks in the region indefinitely.
In fact, the Houthis may be responding to these operations and a marked change in geo-political landscapes, as evidenced by the relative weakness of Iran in supporting its historic 'proxy' forces in the region, by making fresh alliances. Namely with the Somalia-based Islamic Fundamentalist group Al-Shabaab.
The May 2025 Africa Center report confirms that the two groups are now sharing drone know-how, intelligence, and targeting data across the Horn of Africa. This deepening alliance provides both a boost in manpower and technology to these groups, meaning that insurers and maritime planners must now plan for contingency scenarios accounting for coordinated multi-front threats, not simply isolated single actor incidents.