US–Saudi Tensions: Implications for the Petrodollar System

The recent tensions between the US and Saudi Arabia over a range of issues, in the wake of the ongoing Russia–Ukraine war, and growing ties of GCC states with both Russia and China has only worsened problems for the petrodollar system, which may potentially have serious implications for the global financial and economic order. [...] “US–SAUDI TENSIONS: IMPLICATIONS FOR THE PETRODOLLAR SYSTEM” Recent tensions between the United States and Saudi Arabia, an influential member of the Organization of the Petroleum Exporting Countries (OPEC) countries, in the wake of the ongoing Russia–Ukraine war, has revived concerns about new challenges to the so-called ‘petrodollar system’, which plays a pivotal role in the functioning of the g. [...] At the heart of the petrodollar system lies the relationship between the US and Saudi Arabia, the leading member state of the OPEC. [...] The ruling by the Biden administration actually left the federal judge in Washington with no choice but to reluctantly dismiss the lawsuit against MBS with this observation: “Despite the Court’s uneasiness, the United States has informed the Court that he (MBS) is immune”.14 Again, the Biden administration quelled the passage of the ‘Nopec’ antitrust legislation, after quietly excluding it from a. [...] The US overtures towards Iran, and not even informing let alone involving Saudi Arabia and Gulf states about the JCPOA negotiations has made the Kingdom suspicious of US intentions.22 Some Saudi strategists also blame the US for having allowed the Shia Crescent to rise in the region, with US wars causing Shia ascendance in Iraq, Lebanon, Syria and in Yemen.23 And yet, it is at this critical time f.