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Iran is considering allowing a limited number of oil tankers to pass through the Strait of Hormuz on the condition that cargo is traded in Chinese yuan, a senior Iranian official told CNN.
The official said the potential move is part of Tehran’s plan to manage the flow of oil tankers through the strategic waterway.
Global oil is predominantly traded in U.S. dollars, except for sanctioned Russian oil, which is priced in rubles or yuan, CNN reported. China has sought for years to expand the use of the yuan in oil transactions, though the dollar remains the world’s primary reserve currency.
Concerns over disruptions in the strait, a key route for global energy supplies, have pushed oil prices to their highest levels since July 2022, following the start of the Russian-Ukrainian conflict earlier that year, the report said.
The Strait of Hormuz carries about 20 million barrels of oil per day and roughly 20% of the global liquefied natural gas trade.
The United Nations warned Friday that restrictions on shipping through the strait could have a “massive impact” on humanitarian operations in the region.
Tehran has effectively closed the Strait of Hormuz since March 1, following joint attacks by Israel and the United States on Iran that began Feb. 28.
The strikes have so far killed around 1,300 people, including then-Supreme Leader Ali Khamenei, according to Iranian authorities. Hostilities have since escalated.
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