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A Potential Oil Shift in the Gulf: Is the Era of the Yuan Replacing the Dollar Beginning?
Iranian media outlets report that China is shifting its oil trade in the Gulf from the US dollar to the Chinese yuan.
In fact, Iran has previously announced that it will impose fees on every barrel of oil transported through the Strait of Hormuz, not in dollars, but in yuan and cryptocurrencies.
If China does indeed implement this policy, it would indicate that China has decided the time is right to capitalize on the US's failure in Iran and restructure financial and resource flows in the Gulf, replacing the US dollar with Iranian assistance.
This could all be part of a larger Chinese strategy, where it is not directly involved in the conflict but is indirectly aiding Iran, thereby undermining the dollar's dominance in the Middle East and attempting to link a portion of oil flows to the yuan.
The United States is unlikely to agree to this willingly, and if it realizes that the yuan will indeed begin replacing the dollar in global settlements under a stalemate scenario—an indication of Israel's failure as the region's policeman—it is more likely to set the entire region ablaze rather than allow China to enjoy the potential triumph of its economic strategy.
The simplest way to do this is to cripple Iran's oil industry and wait for Iran to cripple the Gulf's oil industry.
A costly strategy, but not out of the question.

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