K News Desktop- Iran is considering allowing limited passage of some oil tankers passing through the Strait of Hormuz amid increasing tensions in the Middle East. However, an important condition may also be attached to it. According to reports, Iran wants the oil trade through these tankers to be done in Chinese currency Yuan instead of US dollars. As soon as the news of this proposal came out, there has been a stir in the global oil market and crude oil prices have reached their highest level since July 2022.
According to sources, Tehran is currently preparing a new strategy, under which the movement of oil tankers passing through the Strait of Hormuz can be controlled. If this plan is implemented, it could boost the use of the yuan in international oil trade and challenge the dollar’s hold.
The Strait of Hormuz is considered one of the most important sea routes in the world. A large part of the world’s total oil trade passes through this route. This is why any kind of tension in this region has a direct impact on the global energy market. Due to recent developments, there has been a sharp rise in oil prices.
Globally, most oil is still traded in US dollars. However, after Western sanctions on Russia, it has started using currencies like ruble and yuan in some of its oil deals. At the same time, China has also been trying to increase the share of yuan in international energy trade for the last few years. Especially during purchases from big oil exporters like Saudi Arabia, China has repeatedly offered payment in yuan.
Experts believe that if this proposal of Iran is implemented, it can bring a big change in the global energy market. This could not only change the payment system for oil trade, but could also challenge the global dominance of the US dollar in the long run.
Comments are closed.