Capitals, March 17 (SANA) – Escalating tensions in the Strait of Hormuz have reignited debate over the future of currencies used in global energy trade, following reports that Iran may seek to link tanker transit through the strategic waterway to transactions in alternative currencies, particularly the Chinese yuan.
The proposal, although not formally implemented, reflects a broader geopolitical attempt to leverage the strait’s strategic importance amid the ongoing U.S.-Israeli war against Iran, while coinciding with calls by U.S. President Donald Trump to form an international coalition to secure navigation in the waterway.
Analysts say the discussion is part of a growing global trend toward currency diversification in international trade, as the dominance of the U.S. dollar gradually declines. Data indicate that the dollar’s share of global reserves fell from 65.3% in 2016 to around 59.3% in 2024, while major economies such as China and Russia have expanded the use of their national currencies in bilateral transactions.
However, experts stress that the practical impact of any shift remains limited in the short term, given the deep integration of global energy markets within the dollar-based financial system. At the same time, they warn that imposing specific currencies on trade through a vital corridor like Hormuz could increase uncertainty, raise shipping and insurance costs, and further strain global energy markets, especially as the strait carries around 20% of the world’s energy supplies.
China, while seeking to expand the international role of the yuan, is approaching the issue cautiously, prioritizing the stability of energy markets and uninterrupted maritime flows, which are critical to its economy. Russia, meanwhile, continues to promote alternative currencies as part of its broader strategic competition with the United States.
Despite rising debate over monetary diversification, experts agree that the global financial system remains fundamentally anchored to the dollar, even as geopolitical tensions accelerate discussions about a more multipolar currency framework in international trade.
Kh.A
