Houthi blockade pushes oil past $100, rattles crypto markets

President Trump responded with a warning that the US would hold Iran responsible for further Houthi action, and suggested additional incidents would bring substantial military strikes against Iran and the Houthis.

The group's financing has relied on cryptocurrencies, specifically Tether (USDT) on the Tron network and Bitcoin, covering oil trading and sanctions evasion. The US Treasury has sanctioned Houthi-linked networks tied to those flows, with exposure running into the hundreds of millions of dollars.

Tron's low fees and fast settlement made it the preferred blockchain for USDT transfers in regions where banking infrastructure is thin or hostile to the actors involved.

The market reaction has been elevated Bitcoin volatility alongside the oil spike. Oil above $100 a barrel historically feeds inflation concerns, which shift expectations for monetary policy and risk appetite.

Traders said any escalation involving the US, Iran, or Saudi Arabia would amplify volatility across markets, crypto included. The renewed attention on Houthi stablecoin flows could accelerate regulatory action on Tron-based transactions. The Treasury's sanctions list already includes Houthi-linked Tether wallets tied to hundreds of millions of dollars in transfers.