US crude futures fell back below $100 a barrel after China reportedly pressed Iran to help rein in the Houthis at Saudi Arabia's request. Saudi Arabia says it can restore half its East-West pipeline capacity within days, easing some supply fears. Fighting continues on several Yemeni fronts even as President Trump says the US is "hopefully toward the end" of its war with Iran.
Oil prices fell on Thursday after Reuters reported that China pressed Iran to help rein in the Houthis, following an appeal from Saudi Arabia. US crude futures extended their drop to fall back below $100 a barrel, building on Wednesday's decline after Saudi Arabia offered additional crude cargoes through Oman and a smaller-than-expected draw in US inventories.
Beijing presses Tehran over the Houthis
Riyadh turned to Beijing for help after the Houthis made a rapid advance along the Red Sea coast last week, fragmenting the positions of the Saudi-backed coalition government. Chinese officials reportedly did not issue explicit threats toward Tehran, according to three Iranian sources cited in the report. China's foreign ministry said it does not wish to see regional tensions spill further into Yemen and the Red Sea, and called for dialogue rather than escalation.
Saudi pipeline recovery adds to the pullback
Saudi Arabia says it can restore half the capacity of its East-West pipeline within days, a claim that has fed the market's optimism even though the coming week will test whether the recovery holds.
Fighting persists despite diplomatic moves
Yemeni government forces are still contesting Houthi advances on several fronts, including the Kahbub mountains near Bab al-Mandeb and around Taiz, with Saudi Arabia providing air support. According to Reuters: President Trump told reporters the US is "hopefully toward the end" of its war with Iran, adding that he has spoken with Iranians directly. Iran's national security chief, Mohsen Rezaei, said Washington must take practical steps to earn Tehran's confidence, stressing that Iran has zero trust in the US.
Source: Oilprice.com
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