The Business Times
business-time-50
SUBSCRIBERS

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
google-preferred-sourceAdd BT as a preferred source
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

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    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.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Iran waroilUS dollarUS-Middle East relationsFinancial marketsTreasury billsBonds

    Share with us your feedback on BT's products and services

    Feedback

    TRENDING NOW

    Lim's pay package includes about S$3.6 million as salary and around S$3.9 million as bonus, indicates the company's annual report.

    Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025

    Chinese Foreign Minister Wang Yi stopped short of explicitly naming the US or Israel as aggressors, a telling omission from a country that otherwise speaks with little diplomatic timidity.

    Beijing’s calculated silence on the Iran war 

    Those aged below 30 account for the largest share of overqualification.

    More workers in Singapore opt for jobs for which they are overqualified: MOM, NTUC studies

    While residential property has delivered solid gains, observers say other assets such as equities often outpace it over the longer term.

    Higher costs, lower returns: Why are Singaporeans still betting on real estate?

    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