China has secured safe passage for its oil tankers through Houthi-controlled waters via quiet diplomacy, maintaining a two-tier system where Chinese vessels transit the Red Sea while Western-linked ships face attacks. A Cosco Shipping supertanker transported approximately two million barrels of Saudi crude oil through the Red Sea on July 23, 2026, after receiving clearances from Houthi authorities. Oil prices have surged above $100 per barrel amid escalating Houthi strikes, particularly after threats targeting Saudi-linked vessels intensified around July 21, 2026. The arrangement, dating back to diplomatic discussions in Oman in early 2024, gives Beijing a commercial edge in energy procurement while the Houthis selectively grant passage to Chinese and Russian ships based on political alignment.
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