Iran War Could Be Making of the Petroyuan, Deutsche Bank Says

The war in Iran is testing the dollar’s role as the currency for global oil trade, with one long-term consequence being a potential shift to using more Chinese yuan, according to Deutsche Bank.

“The conflict could be the catalyst for erosion in petrodollar dominance and the beginnings of the petroyuan,” Mallika Sachdeva, a strategist at the German lender, wrote in a note on Tuesday, citing media reports that Iran is allowing the passage of ships through the Strait of Hormuz if oil payments are made in yuan. China, a long-time partner of Iran, is also the nation’s biggest oil customer.