The Gulf markets softened as fresh attacks by Houthi forces targeted Saudi oil facilities along the Red Sea between July 22 and 25. The assaults disrupted key tankers and Aramco sites near Jizan and Yanbu, causing oil prices to surge beyond $100 a barrel and pushing Bitcoin below $65,000.
About 12% of global seaborne oil passes through the Bab el-Mandeb strait, making any disruption in this narrow passage a significant concern beyond the region. The initial strikes hit two oil tankers, the Encelia and the Layla, followed by attacks on Saudi Aramco's infrastructure, spreading the impact geographically.
The Houthis claimed responsibility, drawing a stern warning from US President Trump who threatened "major military punishment" against Iran, accused of supporting the Yemen-based group. The geopolitical tension rattled Gulf equity markets, reflecting investor unease.
Cryptocurrency markets did not escape the fallout. Bitcoin slid under $65,000, while XRP and other digital assets also retreated amid heightened volatility in energy prices. Data revealed over $900 million in Tether (USDT) transactions on the TRON blockchain linked to Houthi activities, including Bitcoin mining operations utilizing Yemen’s state-controlled internet network, YemenNet.
This new evidence puts pressure on regulators aiming to tighten controls on stablecoin issuers and blockchain networks. TRON, previously scrutinized for illicit finance, may face increased regulatory challenges. Tether, a long-standing regulatory focus, now contends with additional publicly available data that could escalate oversight efforts.
