Saudi Arabia's termination of its 80-year petrodollar deal on June 9, 2024, may reshape global oil markets, as it considers selling oil in currencies like the Chinese yuan, impacting US economic dominance.

According to media sources, Saudi Arabia has chosen not to extend its 80-year petrodollar agreement with the United States, which ended on Sunday, June 9.

Originally signed on June 8, 1974, this pact had been a major contributor to US economic dominance worldwide.

The Birth of the Petrodollar

President Richard Nixon of the United States removed the US dollar's gold peg on August 15, 1971, thus ending the twenty-five-year-old Bretton Woods monetary arrangement. The US now has roughly 8,000 tons of gold reserves as a result of this action, which was initially characterized as temporary and intended to boost the US economy. This decision, made unilaterally, startled the European people. With the freedom to generate money without worrying about losing gold, the US incr...