China Intervenes in Middle East Oil Tensions

Oil prices have taken a hit due to recent developments in the Middle East. China has intervened on behalf of Saudi Arabia, requesting that Iran limit attacks by Houthi rebels on Saudi oil infrastructure. These attacks have threatened a second oil export route in the region.

Oil prices had been steadily increasing over the past few weeks as tensions between the US and Iran escalated, along with military activities by the Iran-aligned Houthis.

The Brent crude futures settled at USD104.87 a barrel, down 95 cents or 0.93 percent. The US West Texas Intermediate futures finished at USD100.30 a barrel, down USD1.61 or 1.58 percent.