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Iran Conflict Threatens U.S. Dollar's Oil Dominance

3/26/2026

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Story summary
  • Deutsche Bank analysts say the war in Iran challenges the U.S. dollar's dominance in global oil trade.
  • The conflict tests petrodollar system established in 1974 that links oil pricing to the dollar.
  • Analysts warn that Gulf countries moving closer to Asia for trade could weaken the dollar's role.
  • Iran's policy allows ships to pass through Strait of Hormuz if payments are made in yuan and signals a currency shift.