Houthis strike Saudi oil tankers and blockade east-west pipeline route, sending Brent above $100

The Houthi movement announced strikes on two Saudi oil tankers on July 23, targeting vessels named Encelia and Layla using a combination of ballistic missiles, cruise missiles, and drones. The attacks are part of a broader blockade campaign aimed at choking off Saudi Arabia’s westbound crude export routes through the Red Sea.

The immediate market reaction was sharp. Brent crude climbed above $100 per barrel, and West Texas Intermediate rose to approximately $88.60.

Why the East-West Pipeline matters

The Houthis are going after Saudi Arabia’s strategic bypass route, the East-West Pipeline, known as Petroline. Stretching roughly 1,200 kilometers, Petroline runs from Saudi Arabia’s oil-rich Eastern Province all the way to the Red Sea port of Yanbu.

By threatening tankers at the Yanbu end of that pipeline, the Houthis are effectively putting pressure on both export channels simultaneously. Saudi Arabia can route crude overland to avoid Hormuz, but if the Red Sea terminal is also under fire, the bypass loses most of its value.

Houthi spokesperson Yahya Saree announced the strikes publicly on July 23, framing them as a continuation of the blockade declared just days earlier. This is not the first time the Houthis have targeted pipeline infrastructure. Prior attacks occurred in 2019 and again in April 2026, though the current escalation appears broader in scope.

Oil shock meets crypto volatility

Bitcoin slid toward $65,500 as the oil price spike triggered a classic risk-off rotation.

Reports indicate that Houthi-affiliated operations have been moving significant sums through digital asset channels, with approximately $900 million in Tether transfers reportedly conducted via the TRON network. Bitcoin mining has also reportedly featured in Houthi financing operations. If digital assets are demonstrably being used to finance attacks on global energy infrastructure, the pressure on regulators in the US, Europe, and beyond to tighten crypto compliance frameworks intensifies considerably.

What investors should watch

The Red Sea has been a persistent disruption point since late 2023, when Houthi attacks on commercial shipping first began reshaping global freight routes. What has changed in mid-2026 is the deliberate targeting of Saudi Arabia’s own export infrastructure rather than third-party commercial vessels.

The Tether and TRON angle is worth monitoring separately from price. Any formal investigation or enforcement action tied to alleged Houthi use of TRON-based stablecoin transfers would create direct regulatory exposure for those networks.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.