ecently, various news stories have surfaced around the world about Iranian demands that oil be traded in yuan. In return for a shift to the Chinese currency, Tehran would guarantee that the Hormuz Strait is open to oil shipping.
The tie between the yuan and the U.S. special military operation against Iran is sensational. In one fell swoop, it would shift the balance of power in the conflict, away from America’s military hegemony to a point where China could deal a near-fatal blow to the U.S. dollar as the world’s preeminent currency.
With such high stakes involved, Trump no longer ‘owns’ this conflict. He cannot back out of it without being absolutely sure that he does not sacrifice the dollar in the bargain.
As the story evolved through global media sources, it gained more substance.
An early, March 14th story appeared in a Russian publication over at Top War:
According to CNN, Iranian authorities are currently discussing a new mechanism for regulating shipping through the [Hormuz] strait. This would allow some vessels to pass through the strait, provided oil transactions are conducted in Chinese yuan. … As the American television channel notes, the condition Tehran is considering stems from China’s desire to expand the use of its currency in global energy markets.
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