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Iran’s Pre-Emptive Strike
by Gary North
Iran is planning to stop using the U.S. dollar to price oil, with less than half of its oil income now paid in the U.S. currency, Iran's central bank governor said.
While reading the above it may help to refer to a map:
The quid pro quo for the dollar's sole acceptability in Saudi Arabia and the other Sunni members of OPEC is protection. As long as the United States keeps the State of Israel on a tight leash beyond its own borders, the Saudis need fear only the Shi'ites.
With Iran now selling oil only for other currencies, it has offered a challenge to the other OPEC exporters. They can get out of the petrodollar trap by switching to the euro. Iran is about to set the precedent. Iraq did, but it was invaded. Then the old arrangement was reimposed by the Americans: oil for dollars only.
Last edited on Wed Apr 4th, 2007 06:31 pm by Joe Kelley