Summary
Iran and China are working together to reduce the dominance of the US dollar in global trade, using the Strait of Hormuz as a key point in their strategy. By promoting the use of the Chinese yuan for transactions, they aim to bypass US-imposed sanctions and increase their financial cooperation.
Key Facts
- Iran and China aim to reduce the influence of the US dollar in global trade.
- The Strait of Hormuz is a critical route used for transporting oil and gas.
- Iran charges transit fees in Chinese yuan for some ships passing through the Strait.
- China and Iran have a long-term strategic partnership, boosting trade between them.
- Iran guarantees safe passage in the Strait under a temporary truce with the US.
- China buys over 80% of Iran’s oil, often using yuan for these transactions.
- Both countries are working toward a more diverse international financial system.
- The US dollar is dominant in the global oil market, with 80% of trades settled in it.
