Iran War Could Be Making of the Petroyuan, Deutsche Bank Says
(www.bloomberg.com)
from schizoidman@lemmy.zip to world@lemmy.world on 25 Mar 07:43
https://lemmy.zip/post/61361370
from schizoidman@lemmy.zip to world@lemmy.world on 25 Mar 07:43
https://lemmy.zip/post/61361370
Iran is allowing the passage of ships through the Strait of Hormuz if oil payments are made in yuan, according to media reports.
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Not sure what my Armenian neighbour has to do with the Iran war, but I guess I’m happy for him.
Your Armenian neighbor is named Petroyuan?
This ensures that the US cannot abandon the war. The Petroyuan would be the end of US power. If they don’t plan on starting an invasion they will have to close the strait. Fortunately Iran promised to do it if they bomb power plants.
Or is it not the end and the Petroyuen is no threat?
This is less than 10% of global oil and I don’t see the rest of the world joining in. People love to announce the end of the dollar’s reserve status but we are nowhere near it yet.
True but these things usually obey the rule of: “first gradually, then suddenly”
And I wouldn’t be surprised if many others are just waiting for the initial spark.
This isn’t the 1980s.
Yes, the Petrodollar is an important part of American hegemony, but it’s not load-bearing like it once was. It’s role in propping up the dollar has been replaced by the globalized financial markets.
So yeah, it would not be good for American power, but it would not cripple it by any stretch.
That might be so but oil is less important than it was in 1970. We have a good prospect of having renewable energies soon, and oil was mostly valued for its energy content, so there are alternatives and there’s less focus on oil.
Civilian energy use may be switching to renewables but militaries still run on oil with no viable alternative on the horizon so the currency oil is sold in will remain strategically important for the foreseeable future.
Militaries will switch to synthetic fuels or hydrogen. It is already doable, and expansion of production will make it cheap in the future.