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Iran Tests Petrodollar at Hormuz With Yuan Transit Fees

The move tests the dollar’s grip on oil trade through a key chokepoint.

Overview

  • Iran has started taking some Strait of Hormuz transit fees in Chinese yuan, with at least two ships paying that way and China’s commerce ministry acknowledging such settlements.
  • Bloomberg, cited by CNBC, reported that Tehran is running a toll that allows only vessels with no ties to the US or Israel and prefers payment in yuan or crypto stablecoins to skirt US sanctions.
  • Iran said it will guarantee safe passage for two weeks in the strait under a ceasefire deal with the US.
  • China buys more than 80% of Iran’s oil, which helps both sides trade outside the dollar and keeps those shipments moving.
  • The dollar still holds 57% of global reserves and most oil is priced in it, yet this challenge tests a petrodollar system built in 1974 when Saudi oil sales shifted to dollars and exporters parked the proceeds in US Treasuries.