Sven R. Larson
Recently, various news stories have surfaced around the world about Iranian demands that oil be traded in yuan. In return for a shift to the Chinese currency, Tehran would guarantee that the Hormuz Strait is open to oil shipping.
The tie between the yuan and the U.S. special military operation against Iran is sensational. In one fell swoop, it would shift the balance of power in the conflict, away from America’s military hegemony to a point where China could deal a near-fatal blow to the U.S. dollar as the world’s preeminent currency. With such high stakes involved, Trump no longer ‘owns’ this conflict. He cannot back out of it without being absolutely sure that he does not sacrifice the dollar in the bargain.
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