Iran considering allowing 'Chinese-linked ships' through Strait of Hormuz
The Islamic Republic may grant safe passage to oil tankers if the cargo is traded in Chinese yuan.
Iran is said to weighing up allowing Chinese-linked tankers through the Strait of Hormuz.
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A Tehran official said the Islamic Republic may grant safe passage to ships if the cargo was traded in Chinese yuan, according to reports.
Iran is considering the move for a limited number of oil tankers, as a way to manage their flow through the Strait, CNN reports.
Oil is almost entirely traded in dollars, apart from sanctioned Russian oil, which is traded in roubles or yuan.
It comes a day after the nation allowed two Indian tankers carrying liquefied petroleum gas through the Strait.
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It comes as President Trump warned on Saturday that the US will be sending warships "to keep the Strait open and safe".
He called on China, France, Japan, South Korea, the UK, and others "that are affected by this artificial constraint" to send ships to the area.
Writing on Truth Social, he added that in the meantime, the US will be "bombing the hell out of the shoreline, and continually shooting Iranian Boats and Ships out of the water".
Iran has said it will not permit any supplies for the United States or its allies to leave the strait, but it was "open to countries who want to talk" about the safe passage of their vessels
On Saturday, Iran allowed two Indian tankers carrying liquefied petroleum gas through the strait, after India had sought exemptions.
However, Iranian Foreign Minister, Abbas Araghchi, claimed that only US and Israeli vessels were forbidden from using the passage, even though ships flagged to multiple countries have been struck.
He also claimed that China and Russia were providing Iran with "military co-operation" in its war against Israel and the US.
Amid the ongoing war in Iran, the closure to the vital shipping lane and caused oil prices to spike to around $100-a-barrel.
Iran has since threatened to take action to increase the cost of crude even further, telling the world to get ready for "$200-a-barrel oil."
The world's oil markets have been warned to expect "catastrophic consequences" if the conflict continues.
Amin Nasser, the CEO of Aramco, said: "While we have faced disruptions in the past, this one by far is the biggest crisis the region's oil and gas industry has faced.
"There would be catastrophic consequences for the world's oil markets, and the longer the disruption goes on, the more drastic the consequences for the global economy."