The crumbling ‘petrodollar’ faces mounting challenges amid Iran war tensions

The era of the gold standard ended in the early 1970s, setting the stage for the rise of the ‘petrodollar’. This system, established in secret by Henry Kissinger and Saudi Arabia, solidified the dollar as the predominant reserve currency. However, the Iran war sheds light on its vulnerabilities – with China eyeing the ‘petroyuan’ as its successor and Saudi Arabia abandoning the petrodollar two years ago. Amid the U.S. and Israel’s conflict with Iran, the strength of the ‘petrodollar’ that underpins America’s global dominance is under scrutiny. Economists caution that this financial system has been gradually deteriorating over recent years,…