Iran to Allow Oil Tankers Through Strait of Hormuz if Payments Made in Chinese Yuan

US President Donald Trump has threatened to attack Iran’s oil infrastructure on Kharg Island if Tehran continues to block vessels transiting the Strait of Hormuz. In the latest developments, Iran is reported to be willing to permit oil tankers to pass through the Strait of Hormuz provided transactions are conducted in Chinese yuan.

According to CNN on Sunday, 15 March 2026, a senior Iranian official stated that Iran is considering allowing a small number of oil tankers to traverse the Strait of Hormuz, with the condition that oil cargo be traded in Chinese yuan. This approach emerges as the Islamic Republic formulates new plans to manage the flow of oil tankers through the waterway.

Internationally, oil is almost entirely traded in US dollars, with the exception of Russian oil, which faces sanctions and is traded in roubles or yuan. Market concerns regarding the strait—a critical global energy corridor—have driven oil prices to their highest point since July 2022.

The United Nations has warned that restrictions on vessel transit through the Strait of Hormuz would have severe consequences for humanitarian efforts as conflict continues.

“When vessels stop moving through the strait, the consequences spread rapidly. Food, medicines, fertilisers, and other supplies become more difficult to transport and more expensive to ship,” said Tom Fletcher, Deputy Secretary-General of the United Nations for Humanitarian Affairs.

War in Iran began when Israel and the United States launched operations on 28 February 2026. The joint Israel-US military campaign resulted in the death of Ayatollah Ali Khamenei, 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 the ships’ countries of origin expel the US and Israeli ambassadors from their respective nations.