Source: Cobden Centre
by Tim Price
“The petrodollar, per Grok, refers to U.S. dollars earned by oil-exporting countries (primarily OPEC members, plus others like Russia and Norway) from crude oil exports. It is not a separate currency but simply dollars received in payment for oil. The term also describes the broader petrodollar system: the longstanding global practice of pricing and trading most international oil in U.S. dollars, which creates sustained worldwide demand for the dollar. … The decision by the West to freeze Russia’s foreign reserves (including US dollars and US Treasury bonds) was the first nail in the coffin for the dollar, obliging sovereign countries to favour stateless assets such as gold. The decision by the US to join Israel in military adventuring against Iran will likely prove the first nail in the coffin for the petrodollar (and similarly boost prospects for the likes of gold over the medium term).” (04/02/26)