Amid heightened tensions in West Asia, Abbas Araghchi, the Foreign Minister of Iran, said the Strait of Hormuz remains open for most countries.
However, according to a report by CNN, Tehran is considering a proposal that would allow a limited number of oil tankers to pass through the strategic waterway only if the cargo is traded in Chinese yuan.
The report cited a senior Iranian official who said the government is exploring new ways to regulate oil tanker movement through the key shipping route amid the ongoing regional conflict.
Strategic Waterway Faces Disruptions Amid Conflict
The Strait of Hormuz is one of the world’s most critical oil transit routes, connecting the Persian Gulf with the Gulf of Oman.
Recent military strikes by the United States and Israel on Iranian targets on February 28 have significantly disrupted maritime traffic in the region.
As a result, hundreds of vessels — including several Indian ships — remain stranded along the narrow sea corridor.
Iran is now reportedly developing a new strategy to manage tanker movement through the strait while addressing security concerns.
Iran Says Passage Closed Only for US and Israeli Ships
Speaking in an interview, Araghchi clarified that the strait has not been completely closed.
“As a matter of fact, the Strait of Hormuz is open. It is only closed to the tankers and ships belonging to our enemies,” he said, referring to vessels linked to the United States and Israel.
According to the Iranian minister, ships from other countries are still allowed to pass through the waterway, although many shipping companies are avoiding the route due to safety concerns.
Oil Trade Currency Debate Resurfaces
The reported yuan-based trade proposal highlights the ongoing debate around global oil trading currencies.
Since the 1970s, following the petrodollar system established during the administration of Richard Nixon, most international oil transactions have been conducted in US dollars.
However, China has been promoting the use of the Chinese yuan for energy trade in an effort to reduce global dependence on the dollar.
Despite these efforts, the yuan has yet to gain widespread acceptance as a primary currency in global oil markets.
Global Shipping and Energy Markets on Alert
The ongoing conflict and uncertainty surrounding the Strait of Hormuz have raised concerns among global shipping companies and energy markets.
The narrow maritime route handles a significant share of the world’s oil supply, meaning any disruption could have a direct impact on fuel prices and global trade.
With tensions still escalating, analysts warn that the situation in the region could continue to influence international energy markets in the coming weeks.
