Iran wants oil trade through Hormuz Strait in Chinese Yuan

What does this mean for the US dollar? If Iran pulls this off and limits Hormuz Strait access to countries trading oil in Yuan, could this be the beginning of a move away from the dollar? Or do you think the US will find a way to prevent this? A bunch of major oil players depend on this Strait. Saudi Arabia, Iraq, Kuwait, United Arab Emirates, Qatar, and Iran all rely on it. Plus, we can't ignore China's ambitions, which are pretty obvious. Russia has also been pushing for alternatives to the US dollar in trade.

While you are at that speculation, another one is that Trump is in talks with others Alies that have their vessels stocked in the terminal, for possible vessel escort, and if that goes through it could be another end to Iran's hold on the global economy via the Strait of Hormuz, which ever decision both make it definitely going to effect the economy one way or the other.

Most of the US allies, such as Britain, Germany, France, Japan, and South Korea, refused to join the war alongside the US following Trump's call. Recently, the German defense minister also stated that the US has the strongest navy in the world. But they could do nothing to change the situation in the Strait of Hormuz. So, Germany and Eu had any reason to intervene because this was not their war, and they were not the ones who started it. The US initiated the war, but they did not dare deploy naval escort forces for fear of heavy losses. Do you think their allies would be foolish enough to accept the risks and losses in a war they are not involved in? https://www.reuters.com/business/aerospace-defense/us-allies-rebuff-trumps-request-support-strait-hormuz-2026-03-16/

Among Iran's most daring moves at the moment is its proposal to accept the Chinese yuan as the payment system for oil exported through the Strait of Hormuz. If the Chinese yuan is introduced as a counterweight to the petrodollar, it will certainly put a huge strain on the petrodollar, which will be a more difficult battle than launching missiles at America. If Middle Eastern countries import/export oil in Chinese currency through the Strait of Hormuz, it will gradually put pressure on the dollar, which is a bad sign for the American economy. If this happens, then America will definitely come under severe pressure.

It means crashing the dollar which could result to causing an uprising within the United States. You have said it all and it is exactly what you call it, dedollarization at its finest. They can not stop it because Donald Trump started a war he didn't carefully plan for, this is what you get for being stubborn and stupid. 20% of the world's oil from the strait, it is why the global economy will suffer if they don't open it or if any nation refuses to buy with the Yuan. Chinese are doing nothing, just trading but they are winning.

I think energy currency shift almost impossible in reality, because global financial infrastructure are USD base especially petro trading and long terem energy contract using USD. For the USD's challanger the toughest and difficult things are to get alternative for replacing the depth of US bonds market. Global payment settlement easy to copy but US bonds market is different stumbling block. Before Iran's conflict dedolarization agenda has been echoed by China and Rusia through BRICS, the escalation only speed up the trend. The most interesting part from these plan is how biggest oil producer and US will react because mostly has closed defence security with US. If Iran implementing oil trade through the Strait of Hormuz must use yuan, then possible reaction from US are add military troops in middle east or Persian Gulf, create international maritime security coalition, 1 millitary vessel escort 1 energy tanker and US will increase sanction and embargo to Iran.

This condition is indeed a smart way for Iran because apart from them succeeding in making the dollar less meaningful in the hormuz strait with this condition also the US cannot make an excuse to attack Iran there because what Iran does is still the same they allow ships to pass there but the payment system is changed from dollars to Yuan so this makes it difficult for the US to maneuver to attack Iran in this strait. In addition, Iran is also making their international relations with China stronger now because indirectly this is like making them higher than the US even though not entirely but the impact resulting from this can be greater for the dollar. But of course the beneficiary is China now, they don't need to come into conflict with the powers that be just by emphasizing a few things then they get a real benefit from Iran's actions.

That is why Trump is pushing further to attack Iran because this is their plan. They want to take over before majority of their oil customers and partners will shift to chinese yuan. It's in favor of China. While they're getting the benefit of what Iran sets as the conditions, they're also helping them economically. So this is a two-way of help for both countries and the alliance that they've built. This is what partnership is all about and they're doing it against USA for wanting only to benefit for their own.

China, Russia has been wanting this dedollarization for a very long time and if this war will push for it to happen, I’m very sure that they won’t hesitate to make sure that happens this time around. The United States being own to be the super power of the world is also by the strength of their dollar in the global market. As the world is a competitive place, other top countries will always seek to look for means to reduce such power given to one country in order not to feel pressured. Dedollarization may be coming sooner than we may expect it. The US government is trying to play a smart one here but I think their allies are not as dump as he might have thought. He has the best naval force, so if he can’t stop them or is scared of stopping them has to be amongst one of the two reasons. One, he may not be able to overpower them even if he uses his army to fight them or he’s just being selfish and not allow himself and the country to be at more damage and wants to make use of his allies power which they’re also preserving for their own country’s good when this war was never their own in the first place.

If the yuan destroys the petrodollar's monopoly, the global financial system will split. This will be the end of globalism. Actually, trade in yuan is already carried out by a group of countries, but if new countries join this, it will divide the world into economic zones. Does the Navy mean so much in our time of drones and missiles? Battleships once reigned on the seas, but the time of their domination passed with the advent of aircraft carriers. Now, for some reason, American aircraft carriers are trying to stay away from the Gulf. One aircraft carrier is 1,100 km away from the Strait, while the other is located in the Red Sea. Why would that be? After all, this reduces the range of air operations, despite the fact that five air tankers were damaged and two were destroyed.

If I were them, I wouldn’t joke too much with the United States 'cause if they want to, they can clear the Strait of Hormuz with planes and ships in few minutes. In my opinion, the United States benefits from high oil prices as this makes it viable to exploit Venezuelan oil which isn’t profitable at low costs. We have seen over the last 100 years that if the US wants something it takes it and the Strait of Hormuz is no exception.

This is an empty threat, so it means nothing to the United States, for it lacks good strategy. Iran and only Iran would decide to use Yuan for its international trades, and not force sovereign nations to do so, simply because they control an international passageway. That's blackmailing. What Iran is doing now may backfire if not careful, as they have less allies in the region. A situation like this often reshape control, which could ensure that a thing like this never happened again.

I guess you are one of the people that is listening to Trump because that was what Trump said recently but which analytically can not help the United States. It will cause inflation and it will later be in a way that no one gained but inflation is not something good to citizens. There is nothing they can do than to pressure the world to make Israel and United States stopped the war. What do you expect Iran to do? To be looking? Being hit and should not do anything it takes to defend themselves? I only think a coward will think the opposite as a leader of a country.

The jokes write themselves indeed. So why do they need the help of China, France, Japan, South Korea and many others to help assist them,  the all and mighty United States asking for a helping hand has come by a suprise to me. I really can not comprehend some part of your write up, but in my opinion, the citizens of America are complaining and they have not benefited from the high prices. They do not control the strait and the plans for regime changes has failed.

Fine, they are desperate and must do something, but this approach is stupid. It's just like an armed robber caught in the act, and out of desperation, held someone at gunpoint as leverage. Most times, it doesn't end well for them. Let's watch as the situation unfolds. Maybe only then will you understand the backfire I meant, when the "power that be" totally takes control of that Island and security around it forever. Then Iran weakens and loses more.

How is it stupid? We thought Trump can do it all. He said UK said something few days ago about helping United States in an area which I have forgotten but Trump said we do not need UK help in the war anymore, that the war has already been won. But here comes the closure of Strait of Hormuz to United States and its allies but Iran are now allowing other ships to pass through the Strait. Why can not Trump just do whatever he wants to do there but requesting UK, Germany, China, Japan and many other countries to be part of the war? Threatening the existence of NATO if UK, Germany and other NATO countries can not help. Does that makes the idea stupid? Also Trump has been told this by United States military or analysts (I do not know which actually), that Iran will close the strait if the war began. Even the war they advised Trump not to go for.

Of course, they could clear the Strait of Hormuz, but the problem is the price they would pay would be very high and costly. That is why they are calling on allies and the international community to intervene instead of doing it themselves. Believe me, if the United States had the ability to do that, they would have done it a long time ago. You are overestimating the power of the United States and underestimating other countries.  That is true, and Trump has talked about it. But he is hiding one thing from his people, and I guess you do not know it either. That is the cost of the war, which is becoming increasingly expensive, and I do not know if the rise in oil prices will be enough to offset it. https://iran-cost-ticker.com/ The world has changed, and the gap in economic and military power between major nation is no longer as large as it was during WW I and II. So, can we stop using the past to shape the future?

Not just the US; if Iran continues to be stubborn, all countries with significant interests in the strait may begin to react militarily, including Iran's allies. After all, the Strait of Hormuz is a territorially independent international waterway. This is no longer an attempt to combat dedollarization; no country wants a country (Iran) to permanently control its export-import routes.

You are getting the whole thing wrong. Iran said the strait is opened for non-US allies. Countries like China and India should have no problem to some extent, but definitely they will also be exporting fuel from countries like Saudi Arabia, Kuwaiti, Qatar and others which are US allies. But did you think China and India will be in support of Trump when NATO allies are not in support of Trump? Iran also said that he will allow countries that are trading oil in Yuan free and safe passage. So do you think that China is not happy about this? Also do you think country like China will leave Iran in support of United States? The Strait of Hormuz is not fully an international waters, it is a territorial waters governed by United Nations Convention Law of the Sea which makes countries bordering the sea not to be able to block the passage for global shipping and aircraft, but Iran and Oman still have the right for environment rules of the strait. I just want you to know what an international waters is and what the strait is a territorial water. Know that the stait is too narrow to be called international waters. Even the oceans near United States are still wider than the strait that United States will be saying you are in their waters or space. But this is just when things are going rightly, if war began, a lot of things will be done just like what Iran did. The strait is just 33 kilometers wide in its narrowest point betweet two countries and you people are saying it is international waters. You should expect this from Iran just like I said before. If this strait is located somewhere in the United States, I think they will also do the same. I will try my best not to be partial about this war. Let me ask you a question. Did Trump violate the international law? But you focus on the strait. Trump has said that international law can not stop him from doing anything. I hope Trump will not break NATO before he finished his 4 years as United States president.

The EU might consider negotiating with Iran rather than going to a war that they know nothing about. The US and Israel started this war without consulting these EU nations. Trump now assumes that he can just command them to join the war. India is already negotiating with Iran for the safe passage of about 30 vessels carrying LNG, LPG, and oil. Trump is learning the hard way that he needs allies to win this war. He should consult with key allies before such an invasion. It is the Emperor and Bibi; they should fight it.