Jordan Daily - Iran is reportedly considering accepting Chinese yuan for oil shipments passing through the Strait of Hormuz, a move analysts say could be an economic weapon against the United States.
The potential shift to yuan-denominated transactions aims to challenge the dominance of the U.S. dollar in global oil trade, at a time when relations with the West remain strained.
According to reports, Iran may allow a limited number of oil tankers to pass through the Strait of Hormuz, a vital waterway for global oil supplies, if payment is made in Chinese yuan.
Analysts suggest that by transacting in yuan, Iran could strengthen its ties with China, the world's largest oil importer, and circumvent U.S. sanctions.
The Strait of Hormuz is a critical chokepoint, with approximately 20% of global oil supplies passing through it, mainly destined for Asian markets, including China.
While most global oil trade is conducted in U.S. dollars, some sanctioned Russian oil is already traded in rubles or yuan.
Data indicates that Iranian crude oil has accounted for a significant portion of China's seaborne imports since the beginning of the year, with independent refineries attracted by discounted prices due to sanctions.
Conflicting reports have emerged regarding passage through the Strait of Hormuz, with some sources claiming Iran will allow Indian-flagged tankers to pass, while others deny this.
