China has privately asked Iran to use its influence over Yemen’s Houthis to help contain the group’s military campaign, according to three Iranian sources familiar with the matter. The request reportedly followed an appeal from Saudi Arabia to Beijing as Houthi forces rapidly expanded their control along Yemen’s Red Sea coast.
According to the sources, Riyadh sought China’s help after the Houthi offensive increased the threat to Saudi oil exports and shipping. China has publicly called for restraint, dialogue and the restoration of safe navigation. Its reported private message to Tehran went further, with Beijing asking Iran to use its influence with the Houthis to prevent the conflict from spreading further along critical energy routes.
The Houthis are closely aligned with Iran, although Tehran has publicly rejected descriptions of the group as a direct proxy. Recent reporting has nevertheless pointed to significant Iranian support for the Houthi campaign. Reuters reported last week that Iranian Revolutionary Guard personnel had provided weapons, funding and tactical guidance during the group’s advance along the Red Sea coast. The latest Chinese request therefore looks like a de-escalation move and could ease supply concerns.
Crude oil fell following the news and the price broke below a major trendline that could lead to even lower prices. It does feel like we are entering a de-escalatory phase. For a more comprehensive technical outlook click here.
This article was written by Giuseppe Dellamotta at investinglive.com.