Houthi forces launched a series of strikes on Saudi oil infrastructure between July 22 and 25, targeting tankers and Aramco facilities along the Red Sea coast. Gulf equity markets slid in response, crude oil blew past $100 per barrel, and Bitcoin dropped below $65,000 as traders across every asset class scrambled to reprice risk.
When roughly 12% of the world’s seaborne oil trade flows through a single chokepoint, the Bab el-Mandeb strait, any disruption there doesn’t stay a regional problem for long.
What happened in the Red Sea
The attacks began on July 22-23, when Houthi forces struck two oil tankers, the Encelia and the Layla, near Jizan. Subsequent strikes hit Saudi Aramco facilities in both Jizan and Yanbu, extending the geographic scope of the assault.
The Houthis claimed responsibility for all of the strikes. US President Trump responded by warning of “major military punishment” for Iran, which has long been linked to Houthi operations in Yemen.
Crude oil prices surged past $100 per barrel as markets priced in supply concerns tied to the Red Sea shipping lane disruptions. Gulf equity markets declined as geopolitical fears mounted.
Why crypto markets caught the shrapnel
Bitcoin fell below $65,000 in the wake of the attacks. XRP also traded lower as the broader digital asset market absorbed the energy price volatility.
Reports have surfaced showing over $900 million in traced Tether (USDT) transactions on the TRON blockchain linked to Houthi activities, with data from as recently as June 2026. The operations reportedly extend to Bitcoin mining on YemenNet infrastructure, which is Yemen’s state-controlled internet network.
What this means for investors
The $900 million in traced USDT transactions tied to Houthi operations gives ammunition to lawmakers pushing for stricter oversight of stablecoin issuers and blockchain networks. TRON, which has faced scrutiny before over illicit finance concerns, could find itself under even more pressure. Tether, already a perennial target of regulatory skepticism, now has another uncomfortable data point in the public record.