China Presses Iran to Contain Houthi Advances Amid Red Sea Shipping Crisis

China has urged Iran to use its influence over Yemen's Houthi forces to curb their military advances along the Red Sea coastline. This diplomatic move came after Saudi Arabia directly appealed to Beijing for help.

The Houthis recently captured strategic positions, including the port of Mokha and Perim Island, which sits at the southern entrance to the Bab el-Mandeb Strait. The strait is one of the world's most critical chokepoints for maritime trade and oil shipments.

Oil prices slid on the news, with Brent crude dipping toward $104 to $105 and WTI hovering around $100 to $102. This drop was compounded by reports that Saudi Arabia was offering additional crude cargoes through Oman, easing some immediate concerns about supply disruptions, along with a smaller-than-expected draw in US crude inventories.

China's leverage over Iran is real but limited. Beijing can threaten to reduce oil purchases, but doing so would also hurt Chinese refiners who have built their operations around discounted Iranian crude.