Iran may allow oil tankers to move through the Strait of Hormuz, a key global shipping route, but reports suggest the permission could come with a condition linked to China.

According to reports quoting an Iranian official, Tehran may allow the passage of oil tankers if the transactions are carried out using the Chinese yuan instead of the US dollar. The proposal is seen as part of Iran’s efforts to manage oil trade while reducing reliance on the dollar.

The Strait of Hormuz is one of the world’s most important maritime routes, with a large portion of global oil shipments passing through it every day. Any restriction in the area can quickly affect energy supplies and international trade.

Tensions in the region have increased due to the ongoing conflict involving Iran, Israel and the United States, raising concerns about the safety of shipping routes.

China, which is one of the major buyers of oil from the region, closely depends on this route for energy supplies. Analysts say any decision regarding tanker movement through the strait could have a wider impact on global oil markets.