Oil Prices Slide as China Presses Iran to Rein In the Houthis

Oil prices are declining as China urges Iran to help control the Houthis, according to reports cited by Reuters. The Chinese foreign ministry stated that China does not want escalating regional tensions to spill over into Yemen and the Red Sea, emphasizing the importance of respecting sovereignty and security for all countries. China urges dialogue and negotiation to resolve issues.

A senior Western diplomat noted that China is one of the few countries that can still pressure Iran to rein in the Houthis. Yemeni government forces are attempting to prevent Houthi advances on multiple fronts, including strategic Kahbub mountains near Bab al-Mandeb and Taiz, with Saudi air strikes in areas around the city. The US is reportedly close to ending its war on Iran, as President Donald Trump discussed with Iranians directly.

UN Secretary-General Antonio Guterres has called for de-escalation and diplomacy in the Middle East amid intensifying conflicts in Yemen and between Saudi Arabia and the Houthis. Iran's national security chief, Mohsen Rezaei, insists that the US must take practical steps to earn Tehran's confidence, expressing zero trust in Washington.

A UN fact-finding mission found reasonable grounds to believe the US was responsible for two attacks, including a school strike in Minab in February, which it deemed war crimes. Throughout the conflict, both Iran and the Houthis have indicated their willingness to accommodate friendly countries like China and Russia regarding water transit and paying fees for the Strait of Hormuz.