Amid rising tensions in the Middle East, demand for yuan settlement is reaching record levels in China's payment systems. Analysts suggest this global conflict may be acting as a major catalyst, particularly within the oil trade.

Rising demand for yuan settlement amid Middle East tensions is driving record transaction amounts in China’s cross-border payment system, analysts said, building on years of efforts to bolster financial infrastructure and expand its global network. “The Middle East conflict may have acted as a catalyst,” said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered, citing rising demand for yuan settlement, particularly in oil trade. China’s Cross-border Interbank...