Crude Eases As China Reportedly Presses Iran To Rein In Houthis
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."
Given that the Iran-aligned Shia group has often shown a willingness to cooperate and coordinate action to Tehran's benefit, Ansar Allah leadership may listen if it gets a signal to de-escalate from Iran.
🇾🇪🇺🇸 Ansar Allah fighters put American anti-tank missiles on display after seizing them in recent fighting. pic.twitter.com/DKs3QpjeUq
— The Saviour (@TheSaviour) September 16, 2026
According to to some Thursday and latest developments via Al Jazeera:
- Yemeni government forces are trying to prevent Houthi advances on several fronts, including the strategic Kahbub mountains near Bab al-Mandeb and Taiz, with Saudi Arabia providing support with air strikes in areas around the city.
- President Donald Trump has told reporters that the US is “hopefully toward the end” of its war on Iran and notes that he has spoken with Iranians “directly”.
- UN Secretary-General Antonio Guterres urges de-escalation and diplomacy in the Middle East as fighting intensifies in Yemen and between the Houthi group and Saudi Arabia.
- Iran’s national security chief Mohsen Rezaei says the US must take practical steps to earn Tehran’s confidence, stressing that the country harbours zero trust in Washington.
- A UN fact-finding mission has found “reasonable grounds” to believe the US was behind two attacks, including the strike against a school in Minab in February, which it says constituted war crimes.
On the Yemen front, Al Jazeera writes, "The fighting is continuing and government forces are claiming that the Ansarullah Houthis have suffered a lot of casualties in the clashes that are occurring on a number of fronts, mainly in western Taiz and also in Kahbub, which is a mountainous area with strategic importance as it overlooks Bab al-Mandeb."
Throughout the conflict, both the Iranians and the Houthis have at various times said they are willing to grant China and other "friendly" countries like Russia "special considerations" when it comes to water transit and paying "fees" - the latter case related to the Strait of Hormuz.