China, Iran in Talks to Use Yuan for Oil Contract Settlement

China and Iran are in talks to settle contracts for oil in the yuan in the face of sanctions from the United States and Europe, Reuters reported, citing unidentified industry sources.

Iran would open a yuan-denominated account in China to receive payment for crude oil that the Middle Eastern country could use for purchases of fuel and equipment and to pay for projects.

China National Petroleum Corp. first made the proposal with Iran several months ago, the report said.