President Donald Trump has threatened to attack the oil infrastructure on Iran’s Kharg Island if Tehran continues blocking ships from traversing the Strait of Hormuz.

Iran is considering allowing a limited number of oil tankers to pass through the Strait of Hormuz, provided that the oil cargo is traded in Chinese yuan.

The potential move comes as the Islamic Republic is working on a new plan to manage the flow of oil tankers through the Strait, the source added.

International oil is almost entirely traded in dollars, apart from sanctioned Russian oil, which is traded in roubles or yuan.