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
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

    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

    Eugene Lai (left) says that he was sharing a view with Tan Chian Khong that the board needed a refresh and that it was not an explicit direction to resign.

    CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh

    Allowing some older malls to evolve organically could help Orchard Road retain diversity, says one observer.

    Room for more offices, homes and green spaces to make Orchard Road more vibrant

    Siranudh Scott had caused an internet sensation with a video accusing his brother of allegedly abusing him during his childhood years.

    ‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse

    The amendments "aim to protect the competitive process of takeover and merger transactions", says SIC.

    MAS revises takeover and merger code to enhance competition and disclosures

    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