The Strait of Hormuz is not blocked, but the US dollar is being bypassed.

Millions of dollars at a time, but not in dollars?

Renminbi quietly rising?

Recently, news about the vital global energy artery—the Strait of Hormuz—may be reshaping international trade and financial order in ways we didn’t expect.

A “blockade” without physical blockade

The Strait of Hormuz is one of the world’s most critical energy chokepoints. In the past, its passage rules were simple: anyone could pass as long as they followed international shipping regulations. But as geopolitical conflicts become normalized, sanctions spill over, and shipping risks are financialized, this long-standing rule set is undergoing fundamental change.

According to UK shipping media, Iran has established a dedicated “safe passage” within its territorial waters in the Strait of Hormuz. This route is near Iran’s Larak Island, where the Islamic Revolutionary Guard Corps (IRGC) Navy conducts identity checks on approved ships before allowing passage, providing transit security. Reports also indicate that the IRGC has set up an initial vessel registration system specifically for “approved ships” to ensure safe passage.

Multiple sources suggest this new operational model has three core features:

• Pre-screening: Ships must submit ownership, flag state, cargo, destination, and other information, and undergo background checks.

• Pricing threshold: After strict review, shipping companies may need to pay high transit fees—potentially millions of dollars.

• Settlement method change: Transit fees are no longer settled in USD. Renminbi or USDT based on the Tron network have become new approved settlement options.

Essentially, this isn’t a traditional “blockade,” but rather an upgrade of an international route into a “permitted channel” with strict screening, high pricing, and specific currency requirements.

De-dollarization is no longer just a narrative

Every time millions of dollars in transit fees are paid in Renminbi, it not only indicates that this energy flow is bypassing the USD settlement system but also serves as a tangible chip in the global “de-dollarization” process.

Against the backdrop of the USD remaining strong and Federal Reserve rate hikes increasing yields, central banks worldwide—especially China, Russia, and India—are quietly accumulating gold, waiting for signals of “long-term de-dollarization trades.”

This “new rule” in the Strait of Hormuz directly provides a critical, high-value, and mandatory international use case for the Renminbi. Shipping companies needing to pass through the strait, whether willing or not, must “absorb” Renminbi to meet IRGC’s payment requirements. This means the actual circulation and recognition of the Renminbi in international trade are being enhanced in a non-market-driven way.

Moreover, there’s an even more noteworthy detail. Reports suggest Iran has allowed oil tankers to be paid in Renminbi. Traditionally, energy trade settlement paths are almost fixed: priced in USD, settled through banking systems, and ultimately integrated into the USD-centric financial cycle. But in this environment, some transactions are beginning to shift—settling in Renminbi.

This change is not just about “adding more payment options,” but about energy trades starting to operate “outside the USD pathway.” Once this capability exists, a chain reaction occurs: those accepted as payment methods can enter this trading system.

In this sense, the Renminbi is more like a passively entering circulation in specific scenarios. In other words, a passive “currency infiltration” is unfolding.

The “divine assist” from the insurance industry

At the same time, the reaction from the international insurance industry provides unexpected structural backing for IRGC’s “new rule.”

Represented by Lloyd’s of London, the global insurance market has begun reassessing risk structures in the region. Market feedback shows:

• Ships without “passage confirmation” → Very high risk → Difficult to insure

• Ships with confirmation → Significantly lower risk → Can be insured

This means that whether “permitted to pass” influences financial pricing. Insurance, fundamentally, is the “underlying credit switch” for global trade. Once the insurance system adjusts, it leads to:

• Ships that do not meet criteria, even if physically able to pass, cannot complete commercial transactions

• Ships that meet criteria are more likely to receive financial support

In effect, the international insurance market, through its actuarial models, has indirectly recognized IRGC’s actual control over the strait, making IRGC’s permission a prerequisite for smooth commercial shipping, thus completing a structural “legitimization” of financial power.

A new pattern of oil flow

The Strait of Hormuz has not closed.

Oil is still flowing.

But deeper changes have already taken place:

• Who can pass

• In what currency to settle

• Who defines risk

As these core questions begin to diverge, a longer-term trend may be emerging: it’s not that the world is collectively abandoning the USD, but that more and more key trade and financial transactions are starting to operate without it.

The Strait of Hormuz, carrying 30% of global seaborne oil trade, is accelerating a global financial and geopolitical transformation in unprecedented ways.