Hashio Chain News Flash | Iran Proposes Yuan Settlement Conditions for Oil, Strait of Hormuz Faces Critical Turning Point

On March 14, according to reports from multiple US media outlets, an Iranian official revealed that the Iranian government is considering allowing some tankers to continue passing through the Strait of Hormuz, but has proposed a new settlement condition — relevant oil transactions must be settled in yuan.

This statement is viewed by the market as an important signal in the current Middle East situation.

Analysts believe this proposal contains at least four layers of strategic considerations:

First, it provides a way to de-escalate the situation. Long-term blockade or threats to blockade the Strait of Hormuz would put enormous international pressure on Iran, while limited passage of tankers can ease diplomatic pressure.

Second, it circumvents the US dollar settlement system. If yuan settlement is adopted, Iran's partial oil trade can avoid the US dollar clearing network, thereby reducing the impact of US financial sanctions.

Third, it promotes an oil settlement "de-dollarization" experiment. If any country accepts yuan settlement for oil, this will become an important breakthrough in the global energy trading system.

Fourth, it strengthens China-Iran energy cooperation. Yuan settlement not only helps expand China's financial role in energy trade, but may also further deepen long-term cooperation between China and Iran.

The Strait of Hormuz handles approximately 20% of global oil transportation volume. Any changes in settlement systems or transportation policies could have cascading effects on the international energy market and global financial landscape.

Against a backdrop where geopolitics and currency systems intertwine, changes in oil settlement currencies often reshape the world order more than missiles do.