End of the petrodollar era ?

With the continuation of the Israel-Us war against Iran particularly along the Strait of Hormuz, we may well be seeing the end of the petrodollar era. 

Tehran is only allowing oil tankers through the strait of Hormuz, if the cargo is traded in Chinese Yuans. Yes not dollars but Yuans. This is essentially a declaration of a financial war as well. 

In 1974, Henry Kissinger and Saudi Arabia did a deal that priced all their oil in dollars. So as the US got dollar demand and in return Saudi Arabia got military protection. OPEC followed suit and the petrodollar age began, and 52 years of financial dominance began. 

So the Iranians has discovered a powerful future deterrent that is quite independent of nuclear weapons. So maybe we should be grateful for this. 

 

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