Saudi Arabia Shuts Oil Pipeline, Sending WTI and Treasury Yields Higher; Bitcoin Falls
On September 15, Saudi Arabia shut down its East-West pipeline following Houthi attacks on tanker traffic. This move canceled oil shipments to European refiners in September, tightening supply and sending West Texas Intermediate (WTI) crude prices above $103 for the first time since early October 2026. The disruption also pushed U.S. Treasury yields higher, with the 10-year yield reaching a near-20-year high of 5%. Bitcoin fell alongside bonds as rising oil and bond yields revived inflation concerns. The pipeline closure added pressure to an already tight oil market; WTI had risen by over 16% in just one month. The Energy Secretary suggested the disruption might be short-lived, but Saudi Aramco has not provided a timeline for resuming operations. Meanwhile, Bitcoin’s correlation with gold hit its highest level since early 2020 at around 0.50, indicating both assets are now more sensitive to rising yields than geopolitical events. The Senate also failed to advance the CLARITY Act due to insufficient votes, triggering about $288 million in long-position liquidations and further contributing to Bitcoin’s decline.
Topics: bitcoin geopolitical_risk oil_prices treasury_yields