Strait of Ormuz in the centre of geopolitical game. How the mediate East Crisis Accelerates Dedollarisation

The Iranian parliament is debating a bill which is to formally block access to the Ormuz Strait for ships from the United States, Israel and another states considered by Tehran to be “enemy”. In parallel, the People's Bank of China continues an unprecedented series of gold purchases, extending it to nineteen months in a row. Although these 2 phenomena – physical control of the key oil way and diversification of abroad exchange reserves – are taking place on different continents, analysts indicate that they have a common denominator: expanding force on a global strategy based on an American dollar.

The Ormuz Strait, through which about one-fifth of the world's supply of oil and liquefied natural gas flows in peaceful conditions, has for months remained an arena of intense military and diplomatic struggles. According to the latest reports of Iranian state media, the parliament there began work on the Ormuz Strait Management Act in August 2026. The draft envisages a complete ban on transit for vessels belonging to the US and Israel, and ships breaching these rules would be subject to confiscation or advanced financial penalties [1] [2].

The proposed provisions constitute another phase of escalation following the armed conflict that has been in advancement since February 2026. Moreover, Iran is increasingly utilizing its position to enforce transit charges, which, as reported by the cryptocurrency analysts, are collected in Chinese yuan or unchangeable cryptocurrency [3]. These actions run counter to the United Nations Convention on the Law of the Sea, which guarantees freedom of navigation, but under war conditions, the provisions of global law are giving way to military force.

Petrojuan in the shadow of the crisis

The introduction of fees in yuan for transit through Ormuz is simply a signal that the crisis in the mediate East is accelerating the processes that have so far been slow in the comfort of central banks. As Dr. Chen Gang of the East Asian Institute in Singapore notes, the armed conflict and partial blockade of the strait have transformed the thought of “petrojuana” from a theoretical alternate to “a emerging geopolitical instrument” [3].

Historically, the Petrodolara strategy was based on stableness and American safety guarantees for Gulf States. Today, however, the main recipient of mediate east oil is China, which consistently build their “oil fortress”, expanding strategical reserves and diversifying supply sources. For countries subject to western sanctions, specified as Iran and Russia, the settlement of natural materials transactions in Chinese currency is not so much an economical choice as a strategical necessity.

However, experts stress that there is no way of replacing the dollar completely. “Petrojuana improvement will be driven not by universal adoption, but by selective integration, especially in the trade in energy and natural materials by countries excluded from the dollar system” – Chen Gang estimates [3].

Gold fever at central banks

The phenomenon of abandoning the full dependence on the dollar is seen not only in oil trade, but besides in abroad exchange reserves policy. The People's Bank of China (PBOC) for 19 months in a row (up to and including May 2026) increased its gold reserves. Only in May, the Chinese central bank purchased close to 10 tonnes of aggregate, raising full authoritative reserves to 2331 tonnes [4].

China is not isolated in this trend. According to marketplace data, central banks around the world, especially emerging markets, accumulate heavy gold. These activities are motivated by the desire to diversify portfolios in the face of the freezing of Russian abroad reserves by Western countries and concerns about the stableness of conventional fiduciary currencies. Gold, as an act without political hazard from 3rd countries, is gaining attractiveness in times of increased geopolitical tension.

Data source: State Administration of abroad Exchange (SAFE) / Kitco News [4]

Economy in the shadow of geopolitics

The current situation creates a complex image of the global economy. On the 1 hand, the United States faces interior challenges, including possible debt marketplace turbulence due to changes in monetary policy in Japan. On the another hand China, although better prepared for the crisis in the Ormuz Strait than Western countriesThey besides gotta navigate carefully in a planet of increasing protectionism.

On social media and analytical forums, extremist thesis about the “dollar collapse” or “American trap” frequently emerge. However, reality is more nuanced. As analysts conclude, the present minute does not mean a breakdown of the current financial system, but a transition towards a more fragmented order. In this fresh dollar arrangement will stay the dominant currency, but will lose its absolute monopoly for regional alternatives and conventional safe havens specified as gold.

Source:

1. Reuters: Oil gain as investors cautious over Iran-Oman talks, Anushree Ashish Mukherjee, August 6, 2026.
2. The Hill: Iran moves to block US, Israeli ships from Strait of Hormuz, Ashleigh Fields, August 6, 2026.
3. ThinkChina: Petroyuan on the horizon: The mediate East crisis shows global oil finance, Chen Gang, April 20, 2026.
4. Kitco News: China increases gold reserves by 9.95 tons in May for 19th consecutive period of purchases, Ernest Hoffman, 8 June 2026.

Leszek B. Glass

Email: [email protected]

© www.chiny24.com