How the Iranian war may lead to the last days of the petrodollar

By Jules Rimmer – Morning Star

Accumulating dollars to pay for energy has underpinned the U.S. currency for decades

Oil exporting nations have typically recycled their petrodollars into U.S. Treasurys

One unintended consequence of the Middle East conflict may be the end of what is called the petrodollar regime.

The world saves in dollars largely because it pays for its energy in dollars. If the disruption caused by the effective closure of the Strait of Hormuz leads to major economies trading oil in other currencies then this could seriously undermine the dollar’s hegemony in central bank reserves and global trade.