The Business Times
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The Iran war just broke the petrodollar

For the first time since 1996, global central banks now hold more gold than US government bonds. The war is making this look like a signal

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    • An unverified still image which Iran's Revolutionary Guards, quoting Iranian media, said shows the US aircraft destroyed during the Americans' mission to find a stranded airman in Iran on Sunday (Apr 5).
    • An unverified still image which Iran's Revolutionary Guards, quoting Iranian media, said shows the US aircraft destroyed during the Americans' mission to find a stranded airman in Iran on Sunday (Apr 5). PHOTO: VIA REUTERS

    Aaron Brown

    Published Mon, Apr 6, 2026 · 05:27 PM

    THE virtuous loop that has seen America underwrite stability in the Middle East in exchange for Gulf states recycling their dollar revenues into US Treasuries has been broken.

    The understanding traces back to 1974, when Henry Kissinger struck one of the most consequential financial deals in modern history. Saudi Arabia would price its oil in dollars and park the surpluses in US assets – Treasuries above all.

    Other Gulf states followed. In exchange, America provided security guarantees and a stable global order.

    Iran waroilUS dollarUS-Middle East relationsFinancial marketsTreasury billsBonds

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