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Global Oil Transaction Currency Share (2023 Estimate)
Approximate percentage of global oil transactions settled in the US dollar versus other currencies.
Primary Sources
In Strait of Hormuz, Iran and China take aim at US dollar hegemony
As the United States-Israel war on Iran — paused for two weeks on Wednesday amid fresh diplomatic talks — has roiled the global economy for more than a month, Iran and China have seized the opportunity to address a shared gripe about the global financial system.Their common cause: ending the hegemony of the US dollar.Recommended Stories list of 4 itemslist 1 of 4Israeli soldiers fire tear gas at Palestinian youth during raid in Hebronlist 2 of 4Why is Iran’s Bushehr nuclear power plant being attacked?list 3 of 4Protesters swarm US embassy in Tel Aviv, demanding end of warslist 4 of 4Trump says US could charge for Strait of Hormuz passage amid Iran warend of listFor years, they say, Washington has leveraged the dominance of the dollar in international trade to exert influence and inflict pain on enemies and competitors, Iran and China included.The supremacy of the dollar is especially apparent in the global oil market, where about 80 percent of transactions are settled in the currency, according to a 2023 estimate by JP Morgan Chase.In Iran’s control of the Strait of Hormuz, a conduit from the Gulf for about one-fifth of global oil and liquefied natural gas supplies, Tehran and Beijing have found a tool to boost the Chinese yuan as an alternative to the greenback.Under Iranian officials’ de facto toll booth regime, commercial vessels are being charged transit fees in yuan, according to multiple reports, the latest example of deepening Chinese-Iranian economic cooperation facilitated by China’s currency.While it is unclear how many vessels have made payments in yuan, at least two had done so as of March 25, according to Lloyd’s List.China’s Ministry of Commerce last week acknowledged the Lloyd’s List reporting in a social media post that appeared to confirm the use of yuan to settle payments.On Saturday, Iran’s embassy in Zimbabwe said in a social media post that it was time to add the “petroyuan” to the global oil market.Tehran, which on Wednesday said it would guarantee safe passage in the strait for two weeks under a ceasefire deal reached with the US, and Beijing did not respond to requests for comment.“At one level, Iran is aiming to poke its thumb in the United States’s eye, adding insult to injury,” Kenneth Rogoff, an economics professor at Harvard University and former chief economist at the International Monetary Fund (IMF), told Al Jazeera.“At another level, Iran is dead serious about preferring yuan to avoid US sanctions and to cultivate its ally,...
Strait of Hormuz crisis: 3 scenarios from US-Iran tensions ... - Firstpost
As geopolitical tensions in West Asia escalate, the Strait of Hormuz—the world’s energy “jugular vein”—faces uncertainty, with three scenarios now dictating oil flows, shipping costs, and market stability worldwideThe Strait of Hormuz has long been described as the world’s “jugular vein” for global energy, but that metaphor has now taken on a chillingly literal significance. As geopolitical tensions in the West Asia reach a fever pitch, the “Hormuz Question”—whether the waterway remains open, becomes a selective transit zone, or faces a total blockade—has become the single most important variable for global economic stability.With approximately 21 million barrels of oil and a massive portion of the world’s Liquefied Natural Gas (LNG) passing through this narrow chokepoint daily, even a minor disruption sends shockwaves through Wall Street and Dalal Street alike. Investors are no longer asking if the Strait will impact the markets, but how the situation will resolve.STORY CONTINUES BELOW THIS ADAccording to CNBC‑TV18, three key scenarios tied to the US‑Iran standoff and regional security are now shaping oil and global markets.1. A ceasefire with a costMore from World The most probable—but complex—outcome is a reopening of the Strait without a full reset. Even if Iran eases disruptions under diplomatic pressure, it would still effectively control the waterway, potentially introducing informal “tolls” for passage.Some vessels may already be paying extra for safe transit, while most reporting, including Reuters, points to higher insurance and transit costs. Though outside established international norms, shipping companies and insurers are likely to factor in this risk immediately, gradually pushing up freight and energy prices. Oil flows would resume, but at a persistently higher cost.2. A US-led military reopeningA second scenario envisions Washington taking direct action to secure Hormuz militarily. While the US has built up troops in the Gulf, reopening the Strait would require sustained naval operations, including clearing mines, deterring attacks, and escorting commercial vessels.Allies have shown limited willingness to participate, making unilateral action costly and risky. If pursued, this path would likely trigger sharp, short-term volatility in oil markets, though it remains a lower-probability scenario.3. De-escalation first, stability laterThe third option separates the war from maritime operations. Hostilities wind down, but safe passage through ...
Hormuz: The impact of closing the strait on the global economy
Tehran, Iran - Thirty-six countries from around the world convened in an intensive effort to pressure Iran to reopen the Strait of Hormuz, a vital waterway for oil and gas transport. This comes after a partial closure that disrupted international energy markets and drove up global oil prices. Participating nations emphasized that maintaining freedom of navigation in the strait is a strategic ...
Why China May Be The Key To Unlock The Strait Of Hormuz
How China will likely play a key role in restoring flows to the Strait of Hormuz and potentially avoiding a global economic recession.
