Fujairah Port
An oil tanker off the coast of Fujairah, UAE Image Credit: AP

Dubai: Acts of sabotage near Fujairah and in Saudi Arabia have not caused an immediate increase in freight or insurance premiums, according to brokers.

In a span of three days, two sabotage incidents were reported, one off the coast of Fujairah, which is close to the Strait of Hormuz, from where one third of all oil traded by sea passes through.

Saudi Aramco closed two pumping stations after a fire caused by armed drones.

“If anything, it might help freight because I would imagine they will be, all of the vessels will be heavily watched now. The security would’ve stepped up so it may actually ease freight,” Matt Stanley, senior broker at Star Fuels, told Gulf News.

Generally, such incidents exert upward pressure on insurance premiums.

“In terms of insurance, I mean there’ll be a war risk premium. It’s not that big an issue. But there’s been no impact... I actually thought [something] might rally, but it hasn’t,” Stanley said.

“However, bunker premiums might increase but I don’t really see much movement there. I think everyone has may be priced something in, but I don’t know. it doesn’t seem to have had much impact.”