Monday, August 20, 2018

After dumping the U.S.dollar in trade agreements, Iran now sets its sights on disconnecting its oil production from the Petrodollar

While oil sales are not the sole foundation upholding the dollar as the global reserve currency, its use as the primary medium of exchange for the world's energy industry is extremely important.  And this is why nations like China, Russia, and others have sought to use this Achilles Heel to hurt the U.S. by transitioning away from the Petrodollar and into more bi-lateral trade agreements.

The fact that Washington prefers to use the Petrodollar as both a means of financial and foreign policy power has made global confidence in the reserve currency more and more tenuous over the past decade.  And because of this, several countries have created their own alternative systems such as the AIIB and the Yuan-Denominated Oil market to provide nations hit with economic sanctions an alternative to the dollar and to SWIFT that wasn't available just four years ago.

China and Russia have already made serious headway over the past two years into the Middle East, and with OPEC nations looking to disband themselves from the Petrodollar yoke.  And on Aug. 19, the newest one to appear very amenable to ditching the Petrodollar is none other than Iran.

The EU previously pledged to resist US sanctions on Tehran by implementing legislation allowing European businesses not to comply with restrictive US measures against the Islamic Republic, introduced after Washington's withdrawal from the 2015 Iran nuclear deal.
Iran's Vice President Eshaq Jahangiri has expressed hope that "European countries can meet their commitments" under the Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA).
"But even if they cannot, we are seeking solutions to sell our oil and transfer its revenues," Jahangiri was quoted by Iran's state-run news agency IRNA as saying. – Sputnik News
Perhaps more than at any other time in history, economic warfare has supplanted military warfare as the method of choice for empires seeking to hold onto their power and authority.  But in doing so, they have facilitated the creation of their own destruction since the only thing right now propping up America is its ability to force the rest of the world to use their currency.


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