Houthi Attacks Spark Oil Price Spike, Test Bitcoin's Safe-Haven Narrative
Houthi rebels have attacked two Saudi oil tankers in the Red Sea, causing Brent crude to surge past $100 per barrel for the first time since the 2019 drone assault. The targeted vessels, the Encelia and the Layla, were transiting the Red Sea when they were hit on July 22.
Houthi military spokesperson Yahya Saree said the tankers were struck for violating a naval embargo. This marks the first direct attacks on Saudi oil infrastructure since the 2019 drone assault that temporarily cut the kingdom's production in half.
The geopolitical backdrop is getting worse, not better. Houthi leader Abdul Malik al-Houthi publicly threatened Saudi oil facilities on July 16, giving the market about a week's warning that something ugly might be coming.
Goldman Sachs has already weighed in, suggesting prices could exceed $120 per barrel if supply disruptions continue.
Bitcoin held steady in the $63,000 to $65,000 range following the attacks. However, the sanctions angle is worth monitoring closely. The US Treasury sanctioned Houthi-linked cryptocurrency wallets that had received approximately $900 million in USDT in 2025.