New Delhi, March 23 -- As reports emerged last week on which ships Iran had let through the Strait of Hormuz, India-bound carriers of LPG among them, one group was no surprise: vessels carrying Iranian crude exports. By data analytics firm Kpler's estimate, Iran's oil shipments kept up an average daily pace of 1.3-1.4 million barrels in March amid hostilities with the US and Israel. Most of it was headed for China, reportedly, bought by small refiners paying in Chinese yuan.

In contrast, the Gulf states that sell the world's most valuable traded commodity in dollars have found their oil trapped. For decades, a 'currency war' has meant a game of mutual devaluation to cheapen exports for a trade edge. Is Hormuz a flashpoint that could spar...