NEW EASTERN OUTLOOK 🌐 (@NEO_Journal)

🇸🇦🔽🛢🇺🇸The Dollar Without Petro: Dual Hormuz–Red Sea Blockade Cuts Saudi–US Crude Oil Exports to Zero ➿➿➿➿➿➿➿➿➿➿ Throughout the entire month of July 2026, the US received zero crude oil shipments from Saudi Arabia for the first time since 1985. The war with Iran, launched to strengthen the petrodollar system, has produced the opposite effect—it is undermining the very foundation of American financial power. ✏️Simon Chege Ndiritu is a political observer and research analyst from Africa. ➡️By August 9, there was no end in sight for the US-Iran war. Iran maintained closure of the Strait of Hormuz; the Houthis bombed Saudi oil infrastructure and blockaded the kingdom's oil exports from the Red Sea. The petrodollar agreement—the US-Saudi Joint Commission on Economic Collaboration signed in June 1974—mandated Saudi Arabia to sell its oil in US dollars and buy US Treasury instruments. This created permanent demand for the dollar. Saudi Arabia was promised protection through US military presence. Now, this arrangement is crumbling. After only a few months of conflict, the US has not only failed to gain Iranian resources but has also lost control of the flow of resources from Iraq and other dollar-priced crude due to the closure of the Strait of Hormuz and the blockade in the Red Sea. ➡️In September 2024, Trump expressed fears of the US losing the dollar as a "global standard"—he thought it would be as disastrous as losing a war. As of August 2026, the US is on course to lose both the dollar's global standard status and a war. The interruption of oil trade means the US dollar might no longer be backed by Middle East crude. The US Strategic Petroleum Reserve is significantly depleted. Washington's ability to use the military to reinforce the petrodollar is becoming complicated. General Grynkewich warned he was unable to protect Israel from Iranian attacks while defending the US homeland due to limited navy destroyers. This gives a glimpse into Washington's strategic limitations. 🟦Biden stated in 1986 that the $3 billion annual US allocation to Israel was the "best investment" since the recipient was a creation of US interest in the region. Kennedy stated Israel constitutes a US presence in the Middle East, enabling Washington to protect access to oil resources. The US war against Iran was initiated to expand Washington's control over the region's oil and strengthen the petrodollar. The explanation that the war was supposed to protect Israel was a deception. After only a few months of conflict, the US has failed to gain Iranian resources and lost control of the flow of resources from Iraq and other dollar-priced crude due to the closure of the Strait of Hormuz and the blockade in the Red Sea. If the status quo persists, the US financial empire will suffer a serious blow. The US public debt has reached $40 trillion. READ MORE #Petrodollar #USIranWar #StraitOfHormuz #SaudiArabia #Dollar #Geopolitics #EnergyCrisis ✅@NewEasternOutlook