In Strait of Hormuz, Iran and China take aim at US dollar hegemony

What Happened

Iran and China are promoting the Chinese yuan as an alternative to the US dollar in global oil transactions. Under Iran's transit fee system in the Strait of Hormuz, commercial vessels are being charged in yuan. At least two vessels made payments in yuan as of March 2025. China's Ministry of Commerce acknowledged the reports. Both nations aim to reduce reliance on the dollar-dominated financial system and bypass US sanctions. Iran controls a crucial passage for one-fifth of global oil supplies.

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