India’s Ministry of External Affairs confirmed Tuesday that the Indian-flagged mechanised sailing vessel MSV Faize Noore Oliya sank in the Red Sea off Yemen’s western coast after coming under attack, with the entire crew pulled from the water alive. All 14 aboard — 13 Indian sailors and one Yemeni — were rescued and taken to safety, receiving medical assistance with no casualties reported. Yemen’s government-affiliated National Resistance Forces said coast guard and naval units carried out a joint rescue after the vessel was attacked roughly 13 nautical miles south of the Houthi-held port city of Hodeidah, and accused the Iran-backed Houthi movement of carrying out the strike. The Houthis have not commented.

India’s Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, said the vessel was struck by a projectile near Yemeni waters, causing it to capsize and sink before the crew was rescued by the Yemeni Coast Guard and brought to the Port of Mokha. He described the incident as an “unprovoked attack on the defenceless mechanised sailing vessel.”

The sinking came just three days after President Donald Trump called off what he said would have been the largest U.S. military strike against Iran since World War II, saying negotiations had opened a path toward an agreement to reopen the Strait of Hormuz.

Three Days After Washington Stood Down

Trump announced Saturday that U.S. forces were “locked and loaded and ready to go” before deciding to halt the operation after what he described as significant diplomatic progress with Tehran. He said the proposed framework would immediately reopen the Strait of Hormuz and eliminate Iran’s nuclear threat, adding that he wanted to give Iran one final opportunity to reach an agreement.

The administration has repeatedly paused military action while pursuing negotiations. Each pause has been accompanied by renewed diplomatic statements, yet commercial shipping through the region has remained under sustained threat.

Washington Says Progress, Tehran Says Otherwise

Treasury Secretary Scott Bessent said Tuesday that an agreement with Iran to restore freedom of navigation through the Strait of Hormuz could come “today or tomorrow,” reinforcing Trump’s claim that negotiations remain active. Oil prices eased on the remarks as traders priced in the possibility of reduced disruption.

Iran’s account remains sharply different. Tehran’s Foreign Ministry said on August 3 that no negotiations with Washington were underway, insisting discussions were only taking place with Oman over management of the Strait. After Iran publicly rejected Trump’s claims of renewed talks, the president accused Tehran of acting “unbelievably duplicitous” and warned it was facing its last opportunity to reach an agreement.

Despite the diplomatic messaging, military activity has continued throughout the region while negotiations have ebbed and flowed.

Two Maritime Chokepoints Under Pressure

While the Strait of Hormuz remains heavily restricted, Iran’s Yemeni ally has continued threatening the second critical gateway linking Europe and Asia.

The Houthis declared a maritime embargo against Saudi Arabia on July 20, expanding risks across the Bab el-Mandeb corridor. Regional sources have said the group has examined imposing transit fees on commercial shipping, although the Houthis have denied the reports. Officials in Yemen’s internationally recognized government have accused the movement of attempting to replicate Iran’s strategy in the Strait of Hormuz.

Shipping Costs Continue to Rise

Marine insurers reacted quickly after the latest escalation. War-risk premiums climbed to roughly 0.75% of a vessel’s value from about 0.3% before the blockade announcement, adding hundreds of thousands of dollars to the cost of a single voyage.

The operational impact is even greater. Ships rerouted around Africa instead of transiting the Red Sea can add weeks to delivery schedules while sharply increasing fuel consumption and operating costs. Roughly 15% of global trade normally moves through the Suez Canal, while about one-fifth of the world’s seaborne oil passes through the Strait of Hormuz.

Why This Attack Matters

Until now, many shipping companies believed Houthi attacks remained largely focused on vessels with Israeli connections or ships that had recently called at Israeli ports.

A small Indian-flagged cargo vessel does not obviously fit those categories. If the attribution by Yemen’s National Resistance Forces proves accurate, it could signal a broader targeting strategy than many operators had assumed.

India condemned the attack and said its embassy in Riyadh is coordinating with Yemeni authorities to ensure the crew’s safety while reaffirming the importance of freedom of navigation under international law.

Traffic through the Bab el-Mandeb remains well below pre-conflict levels. Every additional strike pushes insurers, shipowners and cargo operators further from any expectation that diplomacy alone will reopen one of the world’s most important trade corridors.

JBizNews Desk

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