Oil trade payments are gradually shifting from traditional dollar transactions to yuan settlements due to escalating tensions in the Strait of Hormuz, according to Russian Finance Minister Anton Siluanov.
As reported by Operative Information Center-OMM, Siluanov noted that recent geopolitical developments are compelling nations to seek more reliable and secure payment mechanisms. The minister emphasized that national currencies are becoming increasingly preferable in the current climate, with China notably expanding the use of the yuan in its global oil procurement. He further added that other nations facing international political pressure are also demonstrating a growing interest in yuan-denominated trade to mitigate external risks.
The Strait of Hormuz remains one of the world's most critical maritime chokepoints, with approximately one-fifth of the global oil supply and a significant portion of liquefied natural gas (LNG) passing through its waters. Siluanov warned that any disruption or closure of the strait poses severe risks to the global energy market, potentially driving up fertilizer and food prices. This volatility particularly impacts energy-importing nations in Asia and Europe, as well as African states that are highly vulnerable to fluctuations in global food and energy costs.
