China Intervenes in Saudi-Iran Conflict to Stabilize Oil Markets

Oil prices fell on Friday after China asked Iran to limit Houthi attacks on Saudi oil facilities, which have threatened a second oil export route in the Middle East.

The request from China came at the behest of Saudi Arabia, which has been seeking to restore its oil production and exports following recent attacks on its infrastructure.

As a result, Brent crude futures settled at $104.87 a barrel, down 0.93% or 95 cents, while US West Texas Intermediate futures finished at $100.30 a barrel, down 1.58% or $1.61.

The recent price increase was driven by the US and Iran's resumed attacks on each other, as well as the Iran-aligned Houthis' stepped-up military activities in the region.

Analysts warn that despite China's intervention, the outlook for oil markets remains murky, with refining capacity issues worldwide contributing to higher prices of key fuels like diesel.