I’m confident I do. Happy to be proven wrong though, but things will only really change when oil reserves truly become scarce. Meanwhile those dollar-based deals will continue. Just can skip a chunk of them for slicker lower fee currency conversions.
Discussion
Okay. But this cuts the Saudi's from us obligations to sell arms as that was also part of the deal.
It basically means that the US is at a tactical and practical disadvantage when it comes to the conflicts between Russia and Ukraine, and Israel and Palestine. Oil supply strains are beginning to take effect. This will undoubtedly have a big impact on energy costs as well.
Hmm.. To me, bluntly, (sorry) it basically just means a 6-page out-of-date document - a pact that was never legally binding (and did not prevent oil trade and arms exports with other countries) - has simply expired. The US can still sell arms to Saudi. The Saudis can still sell oil to the US. Both can still sell their wares to other countries, only now a dollar conversion is not needed for the Saudis. Whether this significantly impacts the dollar's global popularity, I don’t think so as that is largely based on the US’s status as the world's largest economy.
Yes, but not does not stop them buying arms.