Iran challenges petrodollar with Hormuz oil payments in Yuan

[Paco Dennis]

BRICS is gaining in dominance without using the petrodollar, which is the world reserve currency. This war has the potential of changing that.

Tehran's move to condition oil tanker passage on yuan payments threatens the US dollar's global dominance.

Recent reports indicate that Iran is requiring oil tankers passing through the Strait of Hormuz to pay for passage in yuan, a direct challenge to the US petrodollar system that has underpinned American financial and geopolitical power since the 1970s. This move by Tehran comes amid escalating military tensions between Iran and the US-Israel alliance, and reflects a broader trend of de-dollarization as China promotes the internationalization of its own currency, the yuan.

Why it matters​

The petrodollar system, established through a 1974 deal between the US and Saudi Arabia, has allowed the US to sustain massive debt and military spending by ensuring global demand for the dollar. Iran's actions in the Strait of Hormuz threaten to undermine this system, potentially limiting Washington's ability to wield economic sanctions and its expansive military budget, which are central to American global hegemony.

The details...​

Iran Challenges Petrodollar with Hormuz Oil Payments in Yuan - Washington Today.

 

[Paco Dennis]

Hello, I’ve seen a few of your posts here and you seem like someone with a lot of life experience.

I’m looking to better understand certain situations people encounter later in life, especially around financial matters.

If you don’t mind a brief private chat, I’d really appreciate hearing your thoughts.

This is a very unusual request. I am not good at all with understanding finances. You can do much better than me.

You might be a bot, if not, you have to be 50 or older to be a member here.

 

[smiley]

have we ever had to prove we are above the age barrier??

 

[CallMeKate]

Dennis:

 

[smiley]

I understand, and I appreciate your honesty

And yes, I’m 57, so definitely within the age group here. not a bot.

I’m not looking for anything complicated or technical from you. In fact, sometimes a simple perspective is more helpful than expert knowledge.

I just wanted to ask a few general questions based on life experience, nothing demanding. If you're comfortable, we can keep it very straightforward.

then why not make it public for all our advantages??

 

[Paco Dennis]

I understand, and I appreciate your honesty

And yes, I’m 57, so definitely within the age group here. not a bot.

I’m not looking for anything complicated or technical from you. In fact, sometimes a simple perspective is more helpful than expert knowledge.

I just wanted to ask a few general questions based on life experience, nothing demanding. If you're comfortable, we can keep it ve...

Ok, I PM u. Not sure if u can get PM when your new. It might take a few posts so, if u don't see a alert on the letter icon, go ahead and ask what u want to here.

 

[Trade]

Why it matters
The petrodollar system, established through a 1974 deal between the US and Saudi Arabia, has allowed the US to sustain massive debt and military spending by ensuring global demand for the dollar. Iran's actions in the Strait of Hormuz threaten to undermine this system, potentially limiting Washington's ability to wield economic sanctions and its expansive military budget, which are central to American global hegemony.

I keep hearing that this system benefits the US economy but I have never understood exactly how it does. I guess I need to look for a youtube video with a title like "The Petrodollar System for Dummies" so I can find out why.