Iran considers allowing oil tankers to pass through Strait of Hormuz – but with one condition

Iran is considering allowing a limited number of oil tankers to pass through the strategic Strait of Hormuz, as long as the oil cargo is traded in yuan, CNN reported, citing Iranian officials.Tehran is working on a new plan to manage the flow of tankers through the key maritime corridor amid rising tensions in the region, sources told the outlet.

Most global oil trades are still priced in dollars, except for sanctioned Russian crude, which is often traded in rubles or yuan.China has been trying for years to expand the use of the yuan in global oil trade, including trying to persuade Saudi Arabia to accept the yuan for crude oil purchases. However, the U.S. dollar remains the world’s main reserve currency, while the yuan is still not widely accepted in the international market.Concerns about possible disruptions in the Strait of Hormuz, one of the world’s most important oil shipping routes, have pushed global crude prices to their highest levels since July 2022, shortly after Russia invaded Ukraine.Tensions escalated after U.S. President Donald Trump announced that U.S. forces had attacked Iran’s main oil export hub on Khag Island.“Not long ago, under my direction, U.S. Central Command conducted one of the most powerful bombing raids in the history of the Middle East, completely destroying all military targets on Iran’s crown jewel, Kharg Island,” Trump said in an article published in “Truth Social.”However, the US president said the operation deliberately avoided Iran’s oil infrastructure on the island, which handles about 90% of the country’s crude exports.Trump also warned that the United States could target oil facilities if Iran continues to obstruct shipping in the Strait of Hormuz.Earlier, the United Nations warned that restricting shipping in the narrow waterway could have serious global consequences.“When ships stop passing through the strait, the consequences can spread quickly,” said Tom Fletcher, U.N. Under-Secretary-General for Humanitarian Affairs.“Food, medicine, fertilizers and other supplies have become harder and more expensive to transport,” he added.The Strait of Hormuz is one of the world’s most important maritime chokepoints for oil and gas trade. Any disruption to shipping on this route would cause concern among major energy importing countries, including India, which rely heavily on crude oil imports via this route.