Yemen’s Houthi group struck a Saudi oil tanker in the Red Sea this week, setting the vessel on fire and pushing Brent crude past $98 per barrel.

The tanker Encelia was hit by an unknown projectile after departing the Saudi port of Yanbu on July 20, igniting a fire at the bow. All crew members were reported safe. A second Saudi-flagged tanker, the Layla, was also targeted in the attacks claimed by the Houthis on July 22-23.

What happened in the Red Sea

The Houthi group, formally known as Ansar Allah, declared a maritime blockade against Saudi Arabia on July 20, just days before the strikes. The attacks occurred roughly 70 to 130 kilometers off the Saudi coast, right in the corridor approaching the Bab el-Mandeb Strait, one of the most critical chokepoints for global oil transit.

Multiple tankers had already begun diverting from the area before the missiles flew.

The Bab el-Mandeb Strait connects the Red Sea to the Gulf of Aden. Roughly 10% of global seaborne oil passes through it on any given day.

US officials responded by indicating intentions to hold Iran accountable for the attacks.

Oil prices surge, and crypto feels it

Brent crude surged past $98 per barrel following the attack, reaching a six-week high.

Bitcoin and XRP both faced downward pressure following the escalation, consistent with what’s happened during previous energy shocks.

Why this matters beyond the short term

A one-off attack is a headline. A declared maritime blockade is a strategy. The Houthis announcing a formal blockade of Saudi ports before launching strikes signals that this isn’t an isolated incident but the opening of a sustained campaign.

If the blockade persists, tanker operators will demand higher premiums for Red Sea transit. Some will reroute around the Cape of Good Hope entirely, adding weeks and millions of dollars to delivery costs.