China’s ‘petroyuan’ oil futures contract spiked last night by 5% (their daily limit) to a new record high, coinciding with the re-imposition of US sanctions on Iran.

The first of two rounds of US sanctions kicked in at 12:01 am (0431 GMT), targeting Iran’s access to US banknotes and key industries, including cars and carpets.

This is the biggest daily move in China’s oil futures since the contract’s inception in March to a new high of CNY537.2…

Notably decoupling from Brent and WTI futures, suggesting a sudden burst of contract-specific buying demand in the ‘petroyuan’…

As Ritesh Jain notes, via Valuewalk.com, the Petroyuan… Tiny, Irrelevant, Nothing. Right? But who would have thought oil will start getting priced in yuan.

China can just bypass Iran sanctions by pricing oil traded in Chinese currency known as Petroyuan…