Iran wants oil that pass through the Strait of Hormuz to be sold in Chinese Yuan

[crwth]

I think the de-dollarization would need a lot more to be completed. It's still not going to dethrone it because the USD dominates more than just oil. There would be more diplomatic pressures if something becomes so drastic that extreme measures are required.

I'm expecting some volatility with USD and oil prices. The outcome will depend on whether other countries follow Iran's lead.

[Taskford]

I think the de-dollarization would need a lot more to be completed. It's still not going to dethrone it because the USD dominates more than just oil. There would be more diplomatic pressures if something becomes so drastic that extreme measures are required.

I'm expecting some volatility with USD and oil prices. The outcome will depend on whether other countries follow Iran's lead.

It cannot happen immediately due to war happen in Iran, but it can lossen up its strength if Iran succeed to influence other countries that pass on Strait of Hormuz to accept only Chinese Yuan by dealing with their produce oil.

But as of the moment USD is gaining momentum and what we can see is the fast decline of those supposed to be safe haven assets minerals.

Well see if this troubles will further create changes to both oil and USD in next following days especially if this war extend for many days.

[knowngunman]

I think the de-dollarization would need a lot more to be completed. It's still not going to dethrone it because the USD dominates more than just oil. There would be more diplomatic pressures if something becomes so drastic that extreme measures are required.

I'm expecting some volatility with USD and oil prices. The outcome will depend on whether other countries follow Iran's lead.

The outcome here is what matters. If other countries should follow Iran’s lead, petrodollar would have crashed long ago because as far as oil is concerned, Iran has been trading with alternative currencies. They have been on US sanctions for more than multiple decades and ever since distant themselves from anything USD.

Even if Iran is able to achieve this aim of convincing other countries to jettison dollar for oil trade in the long run, it can only weaken dollar dominance in the region. To see the overall collapse of USD in the international market will require more than just oil as you stated because US have more than just oil to rely on. This war has reveal a lot and we should pay attention instead of arguing on currency devaluation.

[Swordsoffreedom]

I think the de-dollarization would need a lot more to be completed.

Of course, the dedollarization process will take a very long time, possibly even decades. It will not happen overnight

USD has built a dominant global position over decade and has become deeply embedded in the global economy. So reducing dependence on it will be a very long and challenging process

It's still not going to dethrone it because the USD dominates more than just oil. There would be more diplomatic pressures if something becomes so drastic that extreme measures are required.

USD became strong and has been able to dominate the global market to this day, thanks to the petrodollar agreement formed in 1970. Therefore, simply weakening the petrodollar system would weaken the USD, and the US economy would weaken as well

China's and the BRICS countries' dedollarization strategy is a well thought out plan, but only time will tell whether it will succeed.

[sunsilk]

In between these all ugly war situation, it seems that China is benefiting in hidden way. I read somewhere that China is still supplying drone to Iran and this toll fee to be paid in Chinese Yuan. USA is doing all these war stunt because of Trump presidency but his days in president chair is numbered but China to be a next power is too dangerous to the entire world because Xi Jinping may remain in power all his life time.

That's true and that's the same observation as many of us have seen and thought of. Without a direct attack, China is helping Iran and with this war that's Iran is involved with, they're also helping China.

Trump will have to do everything they can because if it happens that the toll fee in the Strait of Hormuz becomes a permanent thing, the demand for chinese yuan is going to be high.

And that's what Trump is trying to avoid because we can imagine that 20% of oil's supply from that area will have to put a fee on top of it to be delivered from certain parts of the world.

[Smack That Ace]

In between these all ugly war situation, it seems that China is benefiting in hidden way. I read somewhere that China is still supplying drone to Iran and this toll fee to be paid in Chinese Yuan. USA is doing all these war stunt because of Trump presidency but his days in president chair is numbered but China to be a next power is too dangerous to the entire world because Xi Jinping may remain in power all his life time.

That's incorrect, and it is too early to say that China is benefiting from this war.

First, trade between Iran and China has long used the yuan instead of USD, which is nothing new.
The second, Iran is one of the suppliers of cheap oil to China. That mean this war is causing them to lose their supply of cheap oil to fuel their economy. Things would be even worse if Iran lost, they would permanently lose their source of cheap oil. This is not what China expected.

This is not a random war started by Trump. This is clearly a deliberate plan by the US government to consolidate the petrodollar empire, which is threatened by petroyuan.

By the way, why do you think that if China dominates the world, it would be a danger to the world, but if its the US, it would not?

[harapan]

I think the de-dollarization would need a lot more to be completed. It's still not going to dethrone it because the USD dominates more than just oil. There would be more diplomatic pressures if something becomes so drastic that extreme measures are required.

I'm expecting some volatility with USD and oil prices. The outcome will depend on whether other countries follow Iran's lead.

India and Japan are eager to purchase and access the strait, so they are cool with spending and using the petroyuan. All it takes is for it to start and there'll be no return to petro dollar.
20 percent of the world goes back to accessing the strait daily with petroyuan will do a lot harm to the petrodollar and they can not recover from it easily. Trump is a wonderful liar, he claims to have been in communication with the country of Iran but they have debunked that to be a lie. They are not in communication and the same time Israelis still attack Iranian industries.

[Crypto Library]

India and Japan are eager to purchase and access the strait, so they are cool with spending and using the petroyuan. All it takes is for it to start and there'll be no return to petro dollar.
20 percent of the world goes back to accessing the strait daily with petroyuan will do a lot harm to the petrodollar and they can not recover from it easily. Trump is a wonderful liar, he claims to have been in communication with the country of Iran but they have debunked that to be a lie. They are not in communication and the same time Israelis still attack Iranian industries.

Actually, what I find most funny here is that Trump first started this absurd war by saying that he would change the regime of power in Iran, but now it appears that even after killing the highest local leaders of Iran, but their regime has not changed.
Rather, the position that Iran is taking is the opposite, and that also  creating a question like that maybe this war could change the resume of USA trump.

And I don't see anything wrong with Iran's position of allowing oil tankers purchased with Chinese currency to pass through the Strait of Hormuz. If America can change the regimes of various countries and start wars to maintain its petrodollars, then Iran can only demand this much when it comes to using its own land.

[silpersurfer]

While you are at that speculation, another one is that Trump is in talks with others Alies that have their vessels stocked in the terminal, for possible vessel escort, and if that goes through it could be another end to Iran's hold on the global economy via the Strait of Hormuz, which ever decision both make it definitely going to effect the economy one way or the other.

I even heard that Trump is asking for contributions from the Gulf states as well as their military facilities to facilitate the US military in its efforts to suppress Iran, which could lead to a much bigger escalation because it would make the involvement of countries much bigger.
The bidding conditions of these two conflicting countries both have advantages and disadvantages, but if it is realized that the US does not have much influence anymore then holding Iran to stay on good terms is likely that the US will continue to be cornered here, after all if the US succeeds in conquering Iran then which other countries do you think the US will do the same in the future?

[AgriTrack]

This is a strategic move that is aimed at making sure that the united states lose more influence when it comes to global power and their grip on the rest of the world, especially when it comes to countries that are not allies to the united states of America such as Iran. For long the dollar has been the basis of global trade which has given the united states a level of leaverage over the rest of the world. But over time we are seeing more countries coming up to oppose the dollar, organizations such as brics has is planing on launching a currency that will rival the dollar. If this move by Iran works then it will going to be a major blow to the united states especially in the middle east.

The scenario which is developed now according to this war situation is something which is not expected even by thoes who created all this mess. And now Iran is holding a strong position in terms of straight of hormuz as they said the ships can use this route for oil trading which pays Chinese yuan, instead of US dollars. this path for oil trading is something which has great importance because there are countries which depend on this to fulfill their oil needs and ratio is different in different countries. this is true that now the world will converted into two economy groups if this will happen. Because its very obvious that Iran will provide oil in discounted price to thoes countries which are standing on their side, but the remaining ones will face problems

[tabas]

And I don't see anything wrong with Iran's position of allowing oil tankers purchased with Chinese currency to pass through the Strait of Hormuz. If America can change the regimes of various countries and start wars to maintain its petrodollars, then Iran can only demand this much when it comes to using its own land.

Iran is in the position to ask for demand. They didn't started the war and the Strait is in their territory. This makes China also in the advantage by letting all the play done by Iran although there's a rumor that they're helping them supplying them with the arms. And even with the negotiations, they're asking a lot to the US if they want to end this war but by the demands they ask, it only says that they are not going to negotiate with the US anymore. I am not losing hope with the civil talks that can still happen for this war to end.

[Crypto Library]

Iran is in the position to ask for demand. They didn't started the war and the Strait is in their territory. This makes China also in the advantage by letting all the play done by Iran although there's a rumor that they're helping them supplying them with the arms. And even with the negotiations, they're asking a lot to the US if they want to end this war but by the demands they ask, it only says that they are not going to negotiate with the US anymore. I am not losing hope with the civil talks that can still happen for this war to end.

It's actually an open secret that China and Russia have been assisting Iran by supplying everything from weapons to intelligence. In other words, China and Russia have also been waging a proxy war against America. Otherwise, I am very doubtful about how Iran is identifying Israel's weakest locations and launching attacks.

And if I say stop the war, in this case there is no alternative to stop the war, as the reason I will say initially is that there are a lot of casualties and property damage here and at the same time there is an economic instability in the whole world. Iran is four thousand kilometers away from my country Bangladesh, yet due to this war, my country is currently facing an energy crisis and the common people are suffering. However, Iran is not agreeing to negotiate here because they had negotiated before but later attacked again and killed all their frontline leaders. I actually do not know when the end of this war will actually be.

[tabas]

Iran is in the position to ask for demand. They didn't started the war and the Strait is in their territory. This makes China also in the advantage by letting all the play done by Iran although there's a rumor that they're helping them supplying them with the arms. And even with the negotiations, they're asking a lot to the US if they want to end this war but by the demands they ask, it only says that they are not going to negotiate with the US anymore. I am not losing hope with the civil talks that can still happen for this war to end.

It's actually an open secret that China and Russia have been assisting Iran by supplying everything from weapons to intelligence. In other words, China and Russia have also been waging a proxy war against America. Otherwise, I am very doubtful about how Iran is identifying Israel's weakest locations and launching attacks.

And if I say stop the war, in this case there is no alternative to stop the war, as the reason I will say initially is that there are a lot of casualties and property damage here and at the same time there is an economic instability in the whole world. Iran is four thousand kilometers away from my country Bangladesh, yet due to this war, my country is currently facing an energy crisis and the common people are suffering. However, Iran is not agreeing to negotiate here because they had negotiated before but later attacked again and killed all their frontline leaders. I actually do not know when the end of this war will actually be.

Trump's thinking of ending the war is scaring Iran and its allies by joining US' allies to fight with them. But that's not going to happen, they're not going to engage into this war because they know where it could go. 4k KM is so near with Iran and I hope that you're doing well there despite that the energy crisis is being felt by most people who relies on the Strait of Hormuz. There's a recent news that Iran allowed Thailand to pass the Strait but I don't know if the payment of $2M is waived and they're considering each other as friends.

[DrBeer]

Some figures and calculations:

The scale of oil traffic through the Strait of Hormuz
The following volume passes through the Strait of Hormuz:
~17–20 million barrels per day
This is ~20% of global consumption
In monetary terms:
At $70–90 per barrel:
approximately $1.2–1.8 billion per day
approximately $450–650 billion per year
As a share of the global economy: global GDP: ~$105–110 trillion, or approximately 0.4–0.6% of the global economy

I don’t think this has much impact on the dollar

[Emitdama]

And I don't see anything wrong with Iran's position of allowing oil tankers purchased with Chinese currency to pass through the Strait of Hormuz. If America can change the regimes of various countries and start wars to maintain its petrodollars, then Iran can only demand this much when it comes to using its own land.

Iran is in the position to ask for demand. They didn't started the war and the Strait is in their territory. This makes China also in the advantage by letting all the play done by Iran although there's a rumor that they're helping them supplying them with the arms. And even with the negotiations, they're asking a lot to the US if they want to end this war but by the demands they ask, it only says that they are not going to negotiate with the US anymore. I am not losing hope with the civil talks that can still happen for this war to end.

I think the war will go on for some time now. There are very little symptoms of cease fire, and the fire of revenge is growing at an enormous rate. At this point, major countries should take a step back and think about peace. We never know how many lives will be lost in this war. I really wonder when countries would start living together in peace with no greed in mind. Every decade, there is some or other thing happen between countries whose impact is just increasing every decade. Next decade, we might even see a nuclear war which will destroy half of the globe just because some countries are greedy and want all.

What we think does not matter anymore and superpowers are already playing their side so let's not assume anything yet. The war will continue for a few more weeks and the supplies will be limited so let's utilize the resources wisely.

[Crypto Library]

Trump's thinking of ending the war is scaring Iran and its allies by joining US' allies to fight with them. But that's not going to happen, they're not going to engage into this war because they know where it could go. 4k KM is so near with Iran and I hope that you're doing well there despite that the energy crisis is being felt by most people who relies on the Strait of Hormuz. There's a recent news that Iran allowed Thailand to pass the Strait but I don't know if the payment of $2M is waived and they're considering each other as friends.

It is well known that Trump is a liar. While he says he is negotiating with Iranian leaders, Iranian leaders say there has been no talk of negotiations with America and they will not negotiate this time. The Iranian thing is that they will die but will leave after seeing the end of it.


In fact, the area where the war is currently going on has become like the heart of the world because about 20% of the world's energy is supplied through this Strait of Hormuz. And because of this, it has been seen that the allies of the United States have now agreed to deal with Iran, just like South Korea is already talking to Iran. In the last 17 years, South Korea has not seen such inflation. In that sense, even if it is only 4000 kilometers or twice that distance, since most countries are supplied with energy through the Strait of Hormuz, the impact will be felt even if the distance is greater.

[Rabata]

I think the de-dollarization would need a lot more to be completed. It's still not going to dethrone it because the USD dominates more than just oil. There would be more diplomatic pressures if something becomes so drastic that extreme measures are required.

I'm expecting some volatility with USD and oil prices. The outcome will depend on whether other countries follow Iran's lead.

India and Japan are eager to purchase and access the strait, so they are cool with spending and using the petroyuan. All it takes is for it to start and there'll be no return to petro dollar.
20 percent of the world goes back to accessing the strait daily with petroyuan will do a lot harm to the petrodollar and they can not recover from it easily. Trump is a wonderful liar, he claims to have been in communication with the country of Iran but they have debunked that to be a lie. They are not in communication and the same time Israelis still attack Iranian industries.

No one trusts Trump's words anymore. He gives one message at a time, which is confusing. Now the leaders of other countries of the world will not be able to trust him either. As he lies, many things are not revealed to the public because the Western media is also controlled by him. If somehow the Chinese currency starts circulating in this Strait of Hormuz, it will definitely be good for China, but on the other hand, it will be a major disaster for America. I think if Trump cannot return to a proper agreement with Iran, then his politics will be in a big disaster. The way he has repeatedly prioritized his own principles will be proven wrong. Trump has certainly been under a lot of pressure recently.

[Oluwa-btc]

Some figures and calculations:

The scale of oil traffic through the Strait of Hormuz
The following volume passes through the Strait of Hormuz:
~17–20 million barrels per day
This is ~20% of global consumption
In monetary terms:
At $70–90 per barrel:
approximately $1.2–1.8 billion per day
approximately $450–650 billion per year
As a share of the global economy: global GDP: ~$105–110 trillion, or approximately 0.4–0.6% of the global economy

I don’t think this has much impact on the dollar

Lmfao!!! Opening the strait of Hormuz was never the core reason Israel and the United States waged war on iran but it is all of a sudden and you're here telling us you don't think it has much impact?! Well, it's fine, if your analysis makes you sleep better then so be it. We can literally see the numbers awaiting approval from iran to go through the strait and you want us to think otherwise?! Weldone.

[justdimin]

If Iran is successful in this, open the Hormuz Strait just for countries that trade oil in Yuan, is this not the start of dedollarization? Or do you think United States will make that not possible?

Major oil producers rely on this Strait. Saudi Arabia, Iraq, Kuwait, United Arab Emirates, Qatar and Iran relies on Strait of Hormuz. We also know the ambition of China which is not hidden at all. Also Russia has tried its best to make sure that people does not depend on trades in United States dollar.

This might somewhere affect the US dollar, but do you think America will let this happen? They have heavy artillery and warships which can easily guard the Hormuz Strait. Also, recently the route has opened again for oil trade and above-mentioned countries are now receiving rationed supply. War was anyways going to affect global trade market and oil is just the first thing that gets hit.

There will be other commodities following the trend as the situation is yet not stabilized and the war might take a serious route. It is common man who is mostly affected by these situations. It is quite difficult for a common man to get the required gasoline even for cooking purpose. I hope there is peace again so the world can start living as one. I know peace is long gone when we developed the nuclear warheads. Now, countries are just rushing to show they are strong enough to tackle any situation or beat other countries.

[marsel56235]

Thanks for bringing this up. I've been thinking about this too. The crypto space moves so fast that it's hard to keep up with everything. What aspects do you think are most important to focus on?