Iran is betting on the renminbi as a geostrategic lever against the US

The global energy market is dominated by the US dollar, used to price and settle international oil transactions—a system often referred to as the petrodollar. However, recent developments in global geopolitics, particularly the ongoing America-Israel war, have prompted geo-economic strategies to counter this. Notably, Iran’s decision to conduct oil trade using the Chinese renminbi marks a significant challenge to the US dollar’s dominance. Iran’s move has impacted global finance and the broader geopolitics. Iran has faced extensive US-led economic sanctions that restrict its access to global markets and limit the use of the US dollar in international banking. In response,…