Part 8/13:

Proxy conflicts involving Iran and groups like the Houthis have direct repercussions on regional stability and global oil markets. For example, in 2019, Houthis attacked a Saudi oil facility with drones and missiles, briefly halting a significant portion of Saudi oil production. Since China imports a substantial percentage of its oil from the Middle East, such disruptions cause fluctuations in global oil prices, costing China millions daily.

These conflicts highlight the indirect economic costs for China, which, despite maintaining strong trade ties with Iran, is impacted when regional instability intensifies. The attack on oil infrastructure exemplifies how proxy warfare can ripple through markets, emphasizing China's interest in regional stability.