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Axel Bitblaze 🪓
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Axel Bitblaze 🪓
03-15
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Iran may have fired the most dangerous shot in this conflict. and it wasn’t a missile. a senior iranian today official told CNN that tehran is considering allowing oil tankers through the strait of hormuz again under one condition: settlement in yuan instead of dollars. if that actually happens, it touches something much bigger than this war. first you need to understand the petrodollar. in 1974 the U.S. struck a deal with saudi arabia. the arrangement was simple. the U.S. protects saudi oil fields. saudi arabia prices its oil in dollars. that one decision quietly reshaped global finance. because oil is the most traded commodity on earth, every country that wanted energy now needed dollars. so governments around the world started holding dollar reserves. and those dollars didn’t just sit idle. they flowed back into U.S. assets. especially treasuries. that system gave america enormous financial power. print dollars → the world absorbs them → because the world needs dollars to buy oil. it quietly ran the global monetary system for half a century. now look at what’s happening around hormuz. roughly 20% of global oil flows through that one narrow strait. there is no real substitute route. any disruption there immediately sends shockwaves through global energy markets and shipping. but the bigger story might be the currency side. because if oil through hormuz even starts settling in yuan, that would be a max pain for the US yes. Iran can’t beat the U.S. in a military war. so now it pokes the one thing that actually hurts. the dollar.
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