Saudi Arabia on 30 July announced the formation of a maritime defence alliance with 13 other countries, to address shared maritime threats and protect navigation through the Bab el-Mandeb strait, the Red Sea and Gulf of Aden.
Saudi Arabia hosted a meeting on 30 July with representatives from 43 countries, out of which 14 issued a joint statement affirming their support for the Multinational Maritime Defense Alliance project, according Saudi Arabia's ministry of defence. The alliance is a defence initiative seeking to strengthen collective maritime security, protect international sea lanes, preserve freedom of navigation and global trade, and share responsibility in confronting common threats.
The 14 countries include Saudi Arabia, Kuwait, Bahrain, Qatar, Pakistan, Turkey, Egypt, Jordan, Yemen, Bangladesh, Nigeria, Sudan, Djibouti and Somalia.
Participants at the meeting discussed the growing threats targeting maritime security, including attacks on vessels, energy tankers and maritime infrastructure, as well as the risks these pose to the safety of maritime navigation, global supply chain stability, and the international economy. Participants emphasised the importance of strengthening multilateral defence co-operation to deal with these threats and maintain the security of international sea lanes.
The meeting also addressed the founding arrangements for the alliance, with Saudi Arabia set to serve as its founding and leading state and host its headquarters. Military planners from countries intending to join the alliance will work to complete founding procedures including finalising the charter and its reference documents, completing the organisational structure, command and control arrangements, operational mechanisms and forming the necessary frameworks and teams.
Diversions and delays
The Iran-backed Yemeni Houthi militant group announced a ban on Saudi Arabian maritime navigation on 20 July. The group has claimed attacks on Saudi-linked shipping and infrastructure since then, including on Saudi state-controlled Aramco facilities in Jizan and Yanbu, with satellite images suggesting fires at Jizan.
Crude tanker movements have been disrupted as a result, especially for Saudi Arabia's exports from the Red Sea. Some tankers have abandoned planned transits through the mouth of the Red Sea and have instead turned north toward the Suez Canal, potentially adding around a month to the voyage along with higher freight costs if destined for Asian or east African markets.
Tanker markets have so far viewed the announcement of the alliance as a positive development, but any immediate impact on freight rates is expected to be limited. A lasting improvement in shipping conditions would more likely stem from de-escalation efforts rather than from additional military deployments, market participants said. Until there is clear evidence of reduced regional tensions and a sustained improvement in security conditions, shipowners are likely to remain cautious and avoid transits through the region.
The coalition should support sentiment, but owners would place far greater weight on any indication from the Houthis themselves that they are committed to de-escalation, a shipbroker said. Additional naval protection helps, but the missiles will still be flying, they added.
For now, war-risk premiums, insurance costs and transit assessments are unlikely to change materially on the back of an announcement alone, another market participant said.
