Recently, social media circulated claims about an Indian oil tanker paying in Chinese yuan. Moreover, this claim linked to passage through the Strait of Hormuz.
Additionally, Iran had earlier issued an ultimatum regarding payment in Chinese currency. Therefore, speculation quickly spread across platforms.
Iran’s Condition And Toll Details
Iran stated that only tankers paying in yuan could cross Hormuz Strait. Furthermore, Iran charged around 2 million dollars per vessel.
Moreover, this move directly challenged the US petrodollar system. Consequently, global attention shifted towards this development.
Government Issues Clear Denial
However, India’s Ministry of External Affairs rejected these claims firmly. Additionally, officials labelled such reports as false and misleading.
Furthermore, India has not officially confirmed any yuan-based payment for oil transit. Therefore, the government dismissed the viral narrative.
Fake News Alert!
Please stay alert against such false and baseless claims and posts on social media! pic.twitter.com/3PwAaWp9Bu
— MEA FactCheck (@MEAFactCheck) March 19, 2026
Indian Ships Stuck Near Hormuz
According to The Hindu report, 22 Indian-flagged ships remain stranded near Hormuz Strait. Moreover, these vessels carry 17 lakh tonnes of crude oil, LNG, and PNG.
Therefore, India continues efforts to ensure their safe movement.
Iran Considers Yuan Trade Option
Meanwhile, an Iranian official told CNN about considering yuan payments for safe passage. Additionally, Iran may allow limited tankers under such conditions.
Furthermore, this strategy forms part of Tehran’s broader plan to control maritime movement.
India Maintains Diplomatic Engagement
India continues regular communication with Iran regarding tanker movement. Moreover, External Affairs Minister S Jaishankar remains in constant contact.
Spoke this evening to FM @araghchi of Iran. Conveyed greetings for Navroz and Eid.
Our conversation was on the latest developments regarding the conflict. And its implications for the larger region.
— Dr. S. Jaishankar (@DrSJaishankar) March 21, 2026
Additionally, Prime Minister Narendra Modi also maintains engagement with Iranian authorities. Therefore, India prioritises diplomatic coordination.
Spoke with President Dr. Masoud Pezeshkian and conveyed Eid and Nowruz greetings. We expressed hope that this festive season brings peace, stability and prosperity to West Asia.
Condemned attacks on critical infrastructure in the region, which threaten regional stability and…
— Narendra Modi (@narendramodi) March 21, 2026
Jaishankar recently extended greetings for Nowruz and Eid to Iran. Furthermore, discussions focused on conflict developments and regional impact.
Social Media Reactions And Diplomacy
Meanwhile, users on social media expressed varied opinions regarding yuan payments. Additionally, some highlighted India’s strong diplomatic positioning.
Furthermore, users stated that India maintains relations with Iran, Israel, UAE, Saudi Arabia, Qatar, Kuwait, and the US.
Global Oil Trade And Petrodollar Context
According to Statista data, OPEC oil export revenue declined after 2022. Moreover, revenue dropped from 746 billion dollars in 2022 to lower levels later.
Additionally, estimates suggest around 455 billion dollars by 2025.
Origins Of Petrodollar System
Earlier, the Bretton Woods system linked currency exchange to gold. However, this system collapsed in 1971.
Later, Ibrahim Oweiss introduced the term “petrodollar” in 1973. Moreover, the system promoted oil trade in US dollars.
Rise Of Petroyuan And Challenges
Subsequently, China introduced the petroyuan system in 2018. Furthermore, this system directly challenged dollar dominance.
Additionally, Russia reduced dependence on the US dollar over time. Moreover, Russia halted dollar-based transactions after the 2022 Ukraine conflict.
Cases Of Iran And Venezuela
Meanwhile, Iran and Venezuela shifted away from dollar-based oil trade. Furthermore, Iran accepted euro, yuan, and other currencies.
Additionally, Venezuela used euro and yuan for transactions. However, the US responded with sanctions and interventions.
Consequently, the petrodollar system continues to remain dominant globally.
