A member of Iran's parliamentary economics commission said the financial framework for any future Hormuz transit regime must be denominated in Iranian rials (IRR) rather than dollars, yuan or any other foreign currency, calling the strait Iran's "iron hammer for breaking the supremacy of the dollar," government-controlled Mehr reported on March 23.

Rasul Bakhshi Dastjerdi said vessels should only be permitted to transit the strait if their cargo has been partially transacted in rials.

He proposed that initially, 5 to 10% of each shipment's value should be settled in the Iranian currency, with the proportion rising over time.

"The Strait of Hormuz is our iron hammer for breaking dollar supremacy and collapsing sanctions. It must continue to be used so that America and the West understand that it is not their coat to wear," Bakhshi Dastjerdi said.

He argued that basing the transit regime on any currency other than the rial, including the Chinese yuan, would ultimately reinforce the dollar system by strengthening the export capacity of countries that feed America's trade deficit.

"When we want to base the Hormuz financial regime on the currency of one of these countries, for example the yuan, this will strengthen China's productive capacity and enable China to export more goods to America. This is exactly what America wants," he said.

Under his proposal, countries wishing to send ships through the strait would need to acquire rials in advance by trading with Iran.

This would force nations such as France to export goods to Iran and accept payment in rials, then use those rials to purchase oil from Persian Gulf states.

"This will increase global demand for the rial. Now is the time to establish the supremacy of the rial. This is a very important step towards the Islamic Republic of Iran becoming a superpower," he said.

The lawmaker also demanded that US bases be removed from the region and that compensation be paid by both the United States and Arab states that cooperated with Washington.

The comments build on statements by senior official Mohammad Mokhber earlier this week, who said Iran would shift from being a sanctioned state to one that sanctions the West through control of the Hormuz waterway.

The IRGC has already begun charging vessels up to $2mn for passage through a controlled corridor near Larak Island. It is currently not known how foreign governments and companies are paying Iran due to US sanctions on the country's banking sector.