On July 23, the Houthi movement struck two Saudi oil tankers, Encelia and Layla, using ballistic and cruise missiles along with drones. These assaults are part of a wider campaign to blockade Saudi Arabia’s key westbound crude export routes through the Red Sea.
The impact was immediate: Brent crude prices surged past $100 per barrel while West Texas Intermediate climbed to near $88.60. The attacks targeted the East-West Pipeline, also called Petroline, a vital 1,200-kilometer corridor linking Saudi Arabia’s Eastern oil fields to the Red Sea port of Yanbu.
By threatening tankers near Yanbu, the Houthis are simultaneously disrupting Saudi Arabia’s overland export route that bypasses the Strait of Hormuz, undercutting the pipeline’s strategic purpose. This escalation marks a broader offensive compared to previous pipeline attacks in 2019 and April 2026.
The Houthi spokesperson Yahya Saree framed these strikes as a continuation of a blockade announced just days before. The intensified conflict in the Red Sea region has rattled global markets and sent shockwaves through cryptocurrency trading.
Bitcoin’s value tumbled to around $65,500 following the oil price jump, reflecting a risk-off shift among investors. Reports suggest that the Houthis have funneled close to $900 million in Tether through the TRON blockchain, with Bitcoin mining also linked to their financing efforts. These developments could prompt regulators in the US and Europe to tighten controls on crypto networks potentially exploited for funding conflict.
The Red Sea has posed ongoing challenges since late 2023, when Houthi attacks first disrupted commercial shipping lanes. The move to directly target Saudi export infrastructure signals a new phase in their strategy.
Watch closely for regulatory responses tied to the reported use of TRON-based stablecoins in these operations, as enforcement could affect broader crypto compliance frameworks.
