• HasturInYellow@lemmy.world
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    5 hours ago

    They aren’t charging $2mill. They are charging ¥2mil or crypto equivalent. They are intentionally demolishing the Petrodollar.

    More power to them.

    • UnderpantsWeevil@lemmy.world
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      18 hours ago

      They are intention demolishing the Petrodollar.

      I think Climate Change and explosion of alternative energy sources is doing that.

      They’re just trying to evade Western financial restrictions. Dollars aren’t useful to a country that’s cut out of the LIBOR and SWIFT banking systems.

      • shawn1122@sh.itjust.works
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        16 hours ago

        It’s not just about how useful the dollar is to Iran, it’s about making it less useful to other countries also.

        If Iranian oil is back on the market there will be a lot of interested buyers. If it’s only sold in yuan or crypto.

        The petrodollar wasn’t going to last forever youre right but there are many parties interested in ending it sooner than later.

        • UnderpantsWeevil@lemmy.world
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          5 hours ago

          It’s not just about how useful the dollar is to Iran, it’s about making it less useful to other countries also.

          For Iran, specifically, there’s no incentive to accept reparations payments in a currency they can’t easily collect or exchange. Yuan makes sense, because China is one of their biggest trading partners. Bitcoins make sense because they’re easy to launder and can be transferred independent of the NATO-based financial systems.

          If Iranian oil is back on the market there will be a lot of interested buyers.

          It’s more Qatari and Kuwaiti oil at issue. Iranians are just rent-seeking off the most expedient shipping lane.

          The petrodollar wasn’t going to last forever youre right but there are many parties interested in ending it sooner than later.

          The petrodollar is arbitrage between Middle Eastern raw materials and the western banking system. It could move to the PetroEuro without a meaningful change in foreign policies. Or the PetroLoonie or PetroPound for that matter. All of these countries are in agreement that the Persian Gulf states need to play a secondary role in the global economy.

          What Iranians are hoping to change isn’t the primary currency of the region, but the balance of power between US/EU colonizers and local people.

          The very act of securing the Straight and collecting rent on passage is a huge step in that direction, regardless of what currency they collect their fees in. It’s a material change, not just an accounting shift.