Dollar watch - Iran cuts deals with China and India to bypass the dollar in oil deals. and note that the UK wants to delay until 2013 the insurance coverage ban pertaining to shipping iranian oil !

http://www.reuters.com/article/2012/05/08/iran-eu-insurance-idUSL5E8G8EWW20120508

Britain seeks delay to EU's Iran ship insurance ban

Tue May 8, 2012 11:29am EDT

* Britain to lobby EU to postpone measure until 2013
    * UK fears imminent ban could lead to oil price spike
    * Britain controls much of ship insurance market  

    LONDON/BRUSSELS, May 8 (Reuters) - Britain is seeking to
persuade fellow European Union members to postpone by up to six
months a ban on providing insurance for tankers carrying Iranian
oil, arguing that it could lead to a damaging spike in oil
prices, European diplomats said. 
    A European Union ban on importing Iranian oil, which takes
effect on July 1, will also prevent EU insurers and reinsurers
from covering tankers carrying Iranian crude anywhere in the
world from July.  
    The impact of the measure is likely to be felt strongly in
London's financial district, the centre for marine insurance.

*   *   *  *  

and.... 

http://www.commodityonline.com/news/iran-accepts-yuan-for-oil-trade-with-china-threatens-us-dollar-47928-3-47929.html

NEW YORK (Commodity Online): Iran is reportedly accepting Yuan as a settlement currency for its oil trade with China, posing a significant threat to the dominance of the US Dollar as the international trade currency, especially if other countries start to barter similar deal

As per the Financial Times, Iran uses the Yuan to purchase goods from China. Some of the trade is even in barter form. For eg; China's Zhuhai Zhenrong oil trading company provides services such as drilling to Iran in exchange of oil.

Increasing US sanctions have been straining Iran from its oil revenues as its major markets began to cut back oil imports from the country in a bid to comply with US requests. But the sanctions may boomerang back at the US with countries starting to use their respective currencies instead of the US Dollar for oil trades.

Earlier, India and Iran had agreed on a deal whereby India would pay about 40% of its oil imports in the for of Indian Rupee and Iran could use the currency to purchase goods and services from India.

And now with China joining India in a similar deal with Iran, it has to be seen if other countries over the world follow suit.

and......