Crude Eases As China Reportedly Presses Iran To Rein In Houthis
Tyler Durden's Photo
by Tyler Durden
Thursday, Sep 17, 2026 - 06:40 AM
Oil prices are falling on Thursday on some headlines signaling potential de-escalation moves out of the Saudi-Yemen conflict, both via Reuters:
China reportedly presses Iran to help rein in the Houthis after Saudi appeal, according to Retuers citing sources
Oil prices fell on Wednesday after reports that Saudi Arabia was offering additional crude cargoes through Oman eased some concerns about Middle East supply disruptions, while a smaller-than-expected draw in U.S. crude inventories added further downward pressure.
US crude futures have extended their drop to fall back below $100/bbl. This also comes amid continued reports of better-than-expected recovery in Gulf infrastructure, as Saudi Arabia is claiming it is able to restore half the capacity of its East-West pipeline within merely days. The optimism could prove just wishful thinking, however - and the coming week will tell.
Starting last week, when the Houthis made their lightning-fast advance along the Red Sea coast, fragmenting the positions of the Saudi-backed coalition government, Riyadh turned to Beijing for help, the Thursday Reuters report indicates.
"Chinese officials did not issue any explicit threats or indicate that Beijing would seek to pressure Tehran economically if it failed to use its influence over the Houthis, the three Iranian sources said," the report adds.
The Chinese foreign ministry has responded to knowledge of the diplomatic maneuvering getting out that "China does not wish to see regional tensions further spill over into Yemen and the Red Sea. Escalating regional instability is not in the interests of any party".
"The sovereignty and security of all countries should be respected, and facilities vital to people's livelihoods must not be targeted. China calls for an end to actions that further complicate the situation and urges resolving issues through dialogue and negotiation," it said.
A senior Western diplomat in the region was separately quoted as saying "Beijing is one of the few capitals that can still press Iran to rein in the Houthis."
more:
https://www.zerohedge.com/energy/crude-eases-china-reportedly-presses-iran-rein-houthis