Iran Considers Allowing Oil Tankers Using Yuan Currency Through Strait of Hormuz

Iran has maintained its closure of the Strait of Hormuz since the country came under attack from the United States and Israel. Now, Iran is considering allowing oil tanker vessels to transit the Strait of Hormuz provided that transactions are conducted in Chinese yuan.

According to CNN, a senior Iranian official stated that Iran is considering permitting a limited number of oil tankers to pass through the Strait of Hormuz. One of the conditions being imposed is that oil cargo must be traded in Chinese yuan.

This development emerges as the Islamic Republic works on a new plan to manage the flow of oil tanker traffic through the Strait.

It is understood that nearly all crude oil is traded in US dollars. Only Russian oil, which is subject to sanctions, is traded in roubles or yuan.

The Strait of Hormuz itself is a critical global energy corridor. Its closure has driven oil prices to their highest point since July 2022.

The United Nations has warned that restrictions on the flow of vessels through the Strait of Hormuz will have significant consequences for humanitarian efforts as the conflict continues.

“When ships stop moving through the Strait, the consequences spread quickly. Food, medicines, fertilisers and other supplies become more difficult to transport and more expensive to deliver,” said Tom Fletcher, UN Deputy Secretary-General for Humanitarian Affairs.

The conflict in Iran was initiated by Israel and the United States on 28 February 2026. The US-Israeli strikes resulted in the death of Ayatollah Ali Khamenei, who was Iran’s supreme leader at the time.

Iran subsequently retaliated by attacking Israel, US military bases in Gulf region countries, and closing the Strait of Hormuz. Iran also stated that oil tankers could transit on the condition that countries of origin expel US and Israeli ambassadors from their respective nations.