Deadly Houthi Attack on Prestige Falcon Tanker Escalates Maritime Tensions Near Oman

The sinking of the 7,056dwt product tanker Prestige Falcon by a Houthi strike has resulted in the disappearance of all 16 crew members, making it the deadliest attack by the group so far. The Comoros-flagged vessel is submerged beneath the waterline, south-east of Ras Madrakah, Oman, closer to the Persian Gulf than the usual Houthi attack locations.

Search and rescue operations are ongoing for the crew, consisting of 13 Indian and three Sri Lankan nationals, as confirmed by Omani maritime authorities. This incident adds to the toll of Houthi attacks on merchant ships, with at least four seafarers losing their lives previously, but now potentially more due to the missing crew of Prestige Falcon.

The Red Sea attacks have significantly impacted containership charter and freight rates, leading to longer routes around the Cape of Good Hope. Despite expectations of increased vessel scrapping, the market is currently favoring older and less-efficient ships, with low levels of scrapping observed in the first half of 2024. The situation is expected to continue until at least 2025, affecting rates and scrapping markets despite environmental regulations.

Source .