The Business Times
business-time-50

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

Summarise
阅读简体中文版 (beta)
    • 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

    TRENDING NOW

    From left: Pham Nhat Quan Anh, Pham Nhat Vuong, Pham Thu Huong and Pham Nhat Minh Hoang. The couple (centre) remain senior figures in Vingroup, with their children’s presence in the ecosystem growing.

    He built the Vingroup empire. Now South-east Asia’s richest man is handing some key roles to his sons

    As at Aug 31, around 180 million shares have been sold in total, Singtel and the CPF Board said on Sep 17.

    Quarter of Singtel special discounted shares sold ahead of CPF Board transfer

    Agmo CEO Tan Aik Keong’s unconventional rule is to “say yes first, then figure out how”.

    Why Tan Aik Keong of digital solutions specialist Agmo wants to make himself less indispensable

    The Golden Violet oil tanker docked at a PT Pertamina facility in Tanjung Priok Port in Jakarta, Indonesia. Asia’s new energy security architecture should have a support mechanism to help Asian countries build emergency oil reserves through financing and technical assistance.

    Asia needs new energy security architecture

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More