Iran Considers Allowing Limited Oil Tanker Passage Through Strait of Hormuz if Traded in Yuan

Iran is considering allowing limited passage of oil tankers through the Strait of Hormuz on the condition that oil transactions are conducted in Chinese yuan instead of US dollars.

“ISTANBUL, March 14 (Bernama-Anadolu) -- Iran is considering allowing a limited number of oil tankers to pass through the Strait of Hormuz on the condition that the cargo is traded in Chinese yuan, Anadolu Ajansi reported, citing a media report”

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This potential move was reported by multiple sources citing a senior Iranian official's statements to CNN.

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The proposal represents Tehran's strategy to strengthen economic ties with China while reducing reliance on the US dollar amid ongoing Western sanctions.

Iran has effectively closed the strategic waterway since March 1 following US-Israeli attacks, creating significant global energy market disruptions.

While China has been attempting to expand yuan usage in oil trade for years, including with Saudi Arabia, the US dollar remains the dominant global reserve currency.

The yuan is not yet widely accepted in international markets, creating uncertainty about the practical implementation of Iran's condition.

The Strait of Hormuz serves as one of the world's most critical energy transit routes, carrying approximately 20 million barrels of oil daily.

The strait handles roughly 20% of global liquefied natural gas trade according to sources monitoring the escalating conflict.

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Any restrictions or changes to tanker passage through this narrow passage could have major implications for global energy markets and supply chains.

Recent developments include Iran's mining of the strait and threats to attack ships.

An India-bound Thai cargo ship carrying oil was reportedly hit by an Iranian missile.

The Iranian Revolutionary Guard Corps spokesman previously stated no oil would be allowed through amid aggression.

The current proposal suggests a potential shift in approach under specific conditions.

Concerns about potential disruptions in the Strait of Hormuz have pushed global crude prices to their highest levels since July 2022.

“highAs the war on Iran by Israel and the US enters its 15th day since February 28, 2026, Donald Trump is gunning to amp up operations at the Strait of Hormuz, the passageway for 20% of the world's total supply of oil”

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The price increases are creating significant economic ripple effects across international markets.

Uncertainty surrounding Iran's next steps has led to cautious market responses.

Governments and international institutions are preparing potential responses to sudden changes in trade routes and supplies.

Analysts note that any changes in Hormuz Strait usage could substantially impact global energy prices and access to fuel.

Markets are currently focused on Iran's decisions and reactions of allies and rivals.

China's efforts to expand yuan usage in oil trade may gain renewed momentum if Iran's proposal succeeds.

Challenges of establishing yuan as a widely accepted alternative to the dollar remain significant.

Iran has effectively closed the Strait of Hormuz since March 1 following Israel and US joint attacks.

These attacks killed approximately 1,300 people, including former Supreme Leader Ayatollah Ali Khamenei.

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Iran's new supreme leader Mojtaba Khamenei vowed to keep the strait closed until attacks cease.

The US has deployed additional military resources to the region.

The USS Tripoli with 5,000 sailors and 31st Marine Expeditionary Unit departed from Okinawa.

These reinforcements join the USS Abraham Lincoln and USS Gerald R. Ford already in the conflict zone.

Trump announced 'one of the most powerful bombing raids in the History of the Middle East' against Kharg Island.

Trump claimed the operation deliberately avoided Iran's oil infrastructure despite targeting the oil export hub.

The UN has warned that restrictions on shipping through the Strait of Hormuz could have a 'massive impact' on humanitarian operations.

“Iran may allow tankers through Strait of Hormuz: Condition named Tehran has allowed a limited number of oil tankers to pass through the Strait of Hormuz, provided that the trade is conducted in Chinese yuan, reports CNN”

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Humanitarian organizations warn of critical consequences affecting food, medical supplies and essential resources.

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These disruptions could worsen crises for vulnerable populations already impacted by the broader conflict.

Observers note that any escalation could affect regional security and global supply stability.

The UN assessment highlights potential for widespread humanitarian implications beyond economic impacts.

Officials describe the environment as 'very chaotic' and requiring further review.

Real-world on-the-ground data is needed to fully understand operational and strategic implications.

The situation remains highly fluid and uncertain with ongoing monitoring by international bodies.