The pelagic brown alga Sargassum forms an oasis of biodiversity and productivity in an otherwise featureless ocean surface. The vast pool of oil resulting from the Deepwater Horizon oil spill came into contact with a large portion of the Gulf of Mexico's floating Sargassum mats. Aerial surveys performed during and after the oil spill show compelling evidence of loss and subsequent recovery of Sargassum. Expanding on the trends observed in the aerial surveys, we conducted a series of mesocosm experiments to test the effect of oil and dispersants on the vertical position and weight of the Sargassum complex (Sargassum natans and S. fluitans), as well as on the dissolved oxygen concentrations surrounding the algae. Dispersant and dispersed-oil had significant effects on the vertical position of both species of Sargassum over a period of 72 hours. Similarly, dissolved oxygen concentrations were lowest in dispersant and dispersed-oil treatments, respectively. Cumulatively, our findings suggest three pathways for oil-spill related injury: (1) Sargassum accumulated oil on the surface exposing animals to high concentrations of contaminants; (2) application of dispersant sank Sargassum, thus removing the habitat and potentially transporting oil and dispersant vertically; and (3) low oxygen surrounded the habitat potentially stressing animals that reside in the alga. These pathways represent direct, sublethal, and indirect effects of oil and dispersant release that minimize the ecosystem services provided by floating Sargassum - the latter two effects are rarely considered in assessing impacts of oil spills or response procedures.