TEHRAN/BEIJING: Iran is weighing a proposal to allow a limited number of oil tankers to transit the Strait of Hormuz, provided the associated cargo is traded exclusively in Chinese yuan, according to a senior Iranian official cited by CNN.
The condition would mark a significant departure from the dollar-denominated conventions that govern the vast majority of global oil transactions. Iranian Foreign Minister Abbas Araghchi has confirmed that the strait remains open to international shipping, with the explicit exclusion of vessels linked to the United States and Israel.
The proposal aligns with Beijing’s longstanding objective of internationalising the yuan in global commodity markets. Approximately 45 per cent of China’s crude oil imports pass through the Strait of Hormuz, making uninterrupted access a strategic priority for the world’s second-largest economy.
For Tehran, the arrangement offers a means of circumventing US sanctions that have severely constrained its economy, while deepening financial ties with one of its principal oil importers and reducing dependence on the dollar-dominated financial system.
The Strait’s effective closure, following joint US-Israeli military operations that began on 28 February, has severely disrupted global energy markets. Brent crude surpassed $100 per barrel on 8 March, peaking at $126. Vessel traffic has declined by approximately 97 per cent since 2 March, with only ships from nations Iran considers friendly, including India, China, and Turkey, granted limited passage.
US President Donald Trump has announced that the Navy will begin escorting oil tankers through the waterway and has claimed that American forces conducted strikes on Iran’s Kharg Island, the country’s primary oil export terminal.
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