This is what China has been sitting back and waiting for— America's imperial hubris shooting itself in the foot.
International oil is almost exclusively traded in American dollars; it is what forms the fundamental basis for the US' dollar supremacy.
That will end with the death of the petro-dollar; as the single most pivotal global petroleum transportation choke point is blocked off and holding the world at ransom by bartering that if you want your oil, you have to play by their rules— which will drive the dollar down irreparably.
In order to understand much of the current quagmire with Iran; the importance of oil in the region itself and America's relationship with Israel, we have to go back to 1973.
In 1973, King Faisal of Saudi Arabia cut off all oil supply to the US and other western countries for supporting Israel during the Yom Kippur War.
The United States for the first time played an integral role in arming Israel against the growing socialist aligned, pan-Arab bloc of Egypt and Syria; who had sought to dismantle the fledgling zionist entity for once and for all.
The US saw this as an opportunity to not only deter soviet influence in the region as seen with the likes of Nasser and his vision of a unified Arab world, but consolidating its own position in the region (and globally) through monopolizing oil— by tying it, and backing it, through the dollar.
This bold stance caused mass panic and chaos as it impacted Western states severely; so much so that the UK had to switch to a three day work week to ensure their economic survival.
However, in 1974, Henry Kissinger negotiated an end to the crisis with King Faisal by creating the Petrodollar.
It stipulated that for the Gulf oil producers, in exchange for selling oil exclusively in US dollars (as Nixon removed the gold standard in 1971)— Saudi Arabia and the others, would receive military protection from the United States, against Israel.
That logic of Israel being a legitimate threat was manufactured primarily to convince the Arab states to enter into this agreement; eventually used to also allow the US to build bases in their territories too.
Ignoring the fact that as a unified front, the Arab states would have had nothing to fear of Israel. It had only been because of considerable American assistance that Israel had been able to deter and neutralize Nasser's attack.
The Arab states were subsequently pitted against each other therein, as opposed to collectively focusing on confronting the zionist entity, as previously.
This master stroke from Kissinger resulted in Saudi Arabia becoming solely bound to upholding the interests of American imperialism and corporations (and of Israel by extension). King Faisal was assassinated in 1975.
America's support for Israel's settler colonial project became more unequivocal when the dollar became backed by Saudi oil (and vice versa); as America required a outpost/ mechanism in the region and a foothold into Asia through which it could always consolidate its interests and monopoly over resources.
The fundamental crux of global American hegemony; the monetary supremacy it enjoys, that allows for it to consolidate resources/capital and operate this imperialist apparatus, begins and ends with the strength of the US dollar as the global reserve currency.
And why does it enjoy this status? Because it is what the most essential and important resource (oil) on the planet is traded in. The commodity that flows through every facet of every market; that the global economy relies on the most. That is the primary source of America's dominance today; of its total, unrestrained and raw power.
So now you understand why Iran closed the Strait of Hormuz; why its vying for oil going through to be traded in the Yuan and why it has been so adamant to target America's Gulf assets in the region.
It's all interconnected and interdependent; and the only effective way to nullify and dismantle American-Zionist regional hegemony.
International oil is almost exclusively traded in American dollars; it is what forms the fundamental basis for the US' dollar supremacy.
That will end with the death of the petro-dollar; as the single most pivotal global petroleum transportation choke point is blocked off and holding the world at ransom by bartering that if you want your oil, you have to play by their rules— which will drive the dollar down irreparably.
In order to understand much of the current quagmire with Iran; the importance of oil in the region itself and America's relationship with Israel, we have to go back to 1973.
In 1973, King Faisal of Saudi Arabia cut off all oil supply to the US and other western countries for supporting Israel during the Yom Kippur War.
The United States for the first time played an integral role in arming Israel against the growing socialist aligned, pan-Arab bloc of Egypt and Syria; who had sought to dismantle the fledgling zionist entity for once and for all.
The US saw this as an opportunity to not only deter soviet influence in the region as seen with the likes of Nasser and his vision of a unified Arab world, but consolidating its own position in the region (and globally) through monopolizing oil— by tying it, and backing it, through the dollar.
This bold stance caused mass panic and chaos as it impacted Western states severely; so much so that the UK had to switch to a three day work week to ensure their economic survival.
However, in 1974, Henry Kissinger negotiated an end to the crisis with King Faisal by creating the Petrodollar.
It stipulated that for the Gulf oil producers, in exchange for selling oil exclusively in US dollars (as Nixon removed the gold standard in 1971)— Saudi Arabia and the others, would receive military protection from the United States, against Israel.
That logic of Israel being a legitimate threat was manufactured primarily to convince the Arab states to enter into this agreement; eventually used to also allow the US to build bases in their territories too.
Ignoring the fact that as a unified front, the Arab states would have had nothing to fear of Israel. It had only been because of considerable American assistance that Israel had been able to deter and neutralize Nasser's attack.
The Arab states were subsequently pitted against each other therein, as opposed to collectively focusing on confronting the zionist entity, as previously.
This master stroke from Kissinger resulted in Saudi Arabia becoming solely bound to upholding the interests of American imperialism and corporations (and of Israel by extension). King Faisal was assassinated in 1975.
America's support for Israel's settler colonial project became more unequivocal when the dollar became backed by Saudi oil (and vice versa); as America required a outpost/ mechanism in the region and a foothold into Asia through which it could always consolidate its interests and monopoly over resources.
The fundamental crux of global American hegemony; the monetary supremacy it enjoys, that allows for it to consolidate resources/capital and operate this imperialist apparatus, begins and ends with the strength of the US dollar as the global reserve currency.
And why does it enjoy this status? Because it is what the most essential and important resource (oil) on the planet is traded in. The commodity that flows through every facet of every market; that the global economy relies on the most. That is the primary source of America's dominance today; of its total, unrestrained and raw power.
So now you understand why Iran closed the Strait of Hormuz; why its vying for oil going through to be traded in the Yuan and why it has been so adamant to target America's Gulf assets in the region.
It's all interconnected and interdependent; and the only effective way to nullify and dismantle American-Zionist regional hegemony.
https://x.com/chronicalihere/status/2032605248741580994
• • •
Missing some Tweet in this thread? You can try to
force a refresh
