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An oil slick more than 200km long has been spotted near an oil tanker struck by Houthi explosive drone boats in the Red Sea, satellite images revealed on Wednesday.
The Chios Lion, a Liberia-flagged tanker carrying a cargo of crude oil, was shown sustaining catastrophic damage as explosive drone boats rammed into its side in a video released by the group on Tuesday evening.
The attack was part of a swarm of strikes by the Houthis on the vessel and another ship sailing about 185km north-west of Yemen’s port city of Hodeidah. The Conflict and Environment Observatory, an environmental NGO, said the oil slick was 220km long.
Initial reports suggested the Chios Lion had weathered the initial attack with minimal damage.
“While originally headed south, following the attack the vessel turned around and back north out of the threat area to further assess damage and investigate potential oil spillage,” said the Joint Maritime Information Centre, a press office for the international coalition trying to safeguard the waterway and counter Houthi attacks.
It said the captain and crew were safe.
Wim Zwijnenburg, an expert on the environmental impact of conflict, said the spill will “likely cause the biggest impact from coastal pollution as the oil does not dilute easily, thus affecting the marine life on the shore”.
The Red Sea, a transit point for about 12 per cent of the world's maritime trade, is home to unique coral reefs.
“The area is facing frequent pollution from marine traffic passing through, including dumping of wastewater and attacks like these just add to an accumulation of pollutants in a fragile ecosystem,” Mr Zwijnenburg told The National.
“Usually ecosystems are pretty resilient, but these kind of mass pollution events are not helping."
While the spill stretches for many kilometres, it remains unclear exactly how much oil has leaked. Shipping data says the Chios Lion is 243 metres long, which places it in the Aframax category of oil tankers.
These vessels are much smaller than the largest oil tankers in the Ultra Large class, which can carry up to 3.7 million barrels of oil, but they can still hold between 500,000 and 700,000 barrels of crude.
Dean Mikkelsen, a security consultant focused on the region, said the vessel was probably double-hulled, based on information from when it was built, 14 years ago.
Double-hulled tankers were introduced in the early 1990s following a series of international treaties in the wake of the Exxon Valdez oil spill disaster, and have become an increasingly common feature on such carriers.
But they are designed to minimise the impact of tankers running aground, or colliding with other ships, rather than explosive attacks.
Houthi footage of the attack shows blazing oil spilling across the water.
The current Houthi campaign, focused on the Red Sea and Gulf of Aden, started in November and is taking a heavy toll on global commerce.
On Wednesday, a major international company said rebel group's attacks had disrupted its shipping via the Red Sea to its entire ocean network.
AP Moller-Maersk said in a statement: “The cascading impact of these disruptions extends beyond the primary affected routes, causing congestion at alternative routes and trans-shipment hubs essential for trade with Far East Asia, West Central Asia, and Europe.”
Maersk and other shipping companies have diverted vessels around Africa's Cape of Good Hope since December to avoid the Red Sea, with the longer voyage times pushing freight rates higher.
Asian exports are more affected by the situation than Asian imports, Maersk said, adding that this is primarily due to Asian countries being major global exporters.
Maersk said ocean cargo demand remains robust globally, with air freight, including a sea-air solution being used as an alternative where time-sensitive goods need to be moved quickly.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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- Solo riders only, no passengers allowed
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The calling app is available to download on Google Play and Apple App Store
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• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
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• Met Donald Trump at the White House and received his backing.