Nowhere is that more apparent — or potentially impactful — than Iran’s reported plan to showcase the yuan by requiring all oil tankers transiting the Strait of Hormuz to settle transactions in the Chinese currency. It’s enough to ruin Trump’s week — and that’s saying a lot considering the many ways the US-Israeli attack on Iran has gone sideways.Another example: Iran calling Trump’s bluff in supposed ceasefire talks. On Monday, Trump delighted markets by stating he’s postponing his 48-hour ultimatum on attacking Iran’s energy infrastructure amid “productive” negotiations to end the hostilities. Tehran’s response, essentially, was: “Uhhh, what talks?”
But the yuan wrinkle could put Trump World in quite a bind. Assuming Iran would even consider allowing US-bound tankers through the Strait, requiring payment in yuan would be a significant diplomatic concession. Among the reasons Trump was reelected was a pledge to take China down a peg, hence his tariff-fueled trade war.