Petrodollar under fire: How Iran threatens US dollar empire & debt

Petrodollar under fire: How Iran threatens US dollar empire & debt

For decades Washington has weaponised the dollar, forcing the world to buy oil in US currency and financing its endless wars and $39 trillion debt.

The entire American economic model runs on one assumption: the world buys and sells oil in dollars, and those dollars get recycled back into US debt.

The Gulf Cooperation Council economies have been the engine of that system — Saudi Arabia, the UAE, Qatar, Kuwait and Bahrain sell oil in dollars and reinvest the proceeds into American assets.

However, the US so called “solid rock” is now being eroded by Iran and other BRICS nations. 

-- BRICS countries are selling oil in yuan and other national currencies and Iran is turning the Strait of Hormuz — through which roughly 20% of the world’s oil flows — into a yuan toll booth. 

-- Iran has displayed its military might in a way that challenges the GCC nations anchoring the petrodollar, effectively coercing them into reconsidering their reliance on the dollar.

Seeing this as an existential threat, the US and its ally Israel have pushed the narrative about nuclear weapons for years.

Meanwhile, despite a temporary reassertion of GCC alignment with Uncle Sam, Iran has shown cracks in the US promised “shield” to its neighbours.

American reliability is still in question. Japan and South Korea, in concert with Europe, are reportedly accelerating a pivot away from Washington — a shift that could see dollar demand collapse and leave the US unable to finance its debt.

Every barrel of Iranian oil bypassing the dollar is a punch in the gut for US economic dominance. Washington doesn’t protect; it polices its financial empire.

The nuclear story is just an excuse; the real weapon is dollar.

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