China Intervenes in Middle East Oil Tensions

Oil prices took a hit on Friday after China asked Iran to limit Houthi rebel attacks on Saudi oil infrastructure. The request was made at the behest of Saudi Arabia, which is concerned about the safety of its oil facilities.

The Brent crude futures settled at $104.87 a barrel, down 95 cents or 0.93%, while US West Texas Intermediate futures finished at $100.30 a barrel, down $1.61 or 1.58%. The recent surge in prices was driven by the escalation of tensions between the US and Iran, as well as military activities by Houthi rebels.

Analysts say that despite China's intervention, the outlook for oil markets remains uncertain. JPMorgan said it does not have a clear view on oil markets for the first time since the start of the US-Israeli war on Iran in February. The Strait of Hormuz is still largely cut off, with just four commodity vessels passing through the strait on Thursday.