Iran Considers Allowing Limited Tanker Passage Through Strait of Hormuz in Chinese Yuan

A senior Iranian official told CNN on Friday, March 13, 2026, that Tehran is considering a plan to allow a restricted number of oil tankers to pass through the Strait of Hormuz, provided the cargo is traded in Chinese yuan rather than U.S. dollars. 

The potential move is seen as a strategic attempt by Iran to manage the flow of the waterway while bypassing Western financial systems amid the ongoing military conflict with the United States and Israel.

The proposal follows the effective closure of the strait by Iranian forces on March 1, 2026, a response to joint U.S.-Israeli strikes that began on February 28.

The disruption of the waterway, which handles roughly 20% of the world's oil and liquefied natural gas trade, has already pushed global crude prices to their highest levels since July 2022.

 "Tehran is working on a new plan to manage the flow of tankers through the strategic waterway," the official stated, characterizing the shift to yuan as a way to regulate traffic according to conditions set by the Islamic Republic.

The move is being described by analysts as a form of "economic warfare" aimed at the petrodollar system. By insisting on yuan payments, Iran seeks to force international buyers into a difficult choice: comply with U.S. financial regulations or risk losing access to critical energy supplies.

 This approach also signals an effort to draw China deeper into the regional equation as a potential "security guarantor" for the strait.

The announcement came shortly before U.S. President Donald Trump confirmed early Saturday, March 14, that American forces had struck military targets on Iran’s Kharg Island, the country’s primary oil export terminal.

 While Trump noted that oil infrastructure was deliberately avoided in the raid, he issued a stern warning: "Any interference with the safe passage of ships could change that situation." 

In response, Iran’s “Khatam al-Anbiya” Headquarters threatened retaliatory strikes against regional oil infrastructure belonging to U.S. allies if Kharg’s energy facilities are hit.

While most global oil is traded in dollars, the precedent for using the yuan exists with sanctioned Russian oil. H

owever, experts warn that enforcing such a mandate at a global chokepoint like Hormuz would be technically difficult and highly politicized. 

"Any country or company that complies with Iran's requirements would be engaging in a politicized action," noted one leading analyst, suggesting it would likely trigger further countermeasures from Washington.

Currently, several nations including India and Turkey are seeking safe passage for vessels stranded in the Gulf.

While a few exceptions have been made, such as for a Turkish ship and two Indian gas carriers, the majority of tanker traffic remains at a standstill.