Claim- 50 years old deal between US and Saudi canceled Claims: 50-year-old US-Saudi deal scrapped: Saudi Arabia can sell oil in any currency, threat to dollar dominance

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Several media reports have claimed that Saudi Arabia has decided to cancel the 50-year-old petrodollar system agreement with the US.

Yom Kippur is considered a holy day in Judaism. On this day October 6, 1973 Arab countries led by Egypt and Syria attacked Israel. Egyptian President Mohammed Anwar Sadat and Syrian President Hafez al-Assad wanted Israel to regain land captured in the 1967 Six-Day War.

Russia was helping Syria and Egypt in this war. In such a situation America supported Israel and also helped it with weapons. With the help of America, Israel was able to take the lead in this war.

Israel, Saudi Arabia and other OPEC countries, angered by American support, cut oil production. Due to which the price of oil in America has increased. Due to the increase in oil prices, inflation has reached a peak all over the world, including the United States. An agreement was reached between the US and Saudi Arabia on June 8, 1974 to end this crisis.

Petrodollar system started between US and Saudi
According to Bloomberg, under the deal, Saudi Arabia would only be able to sell its oil in dollars. In return, Saudi Arabia received military protection from the US. This deal between the two countries was called the Petrodollar System.

Now, Saudi Arabia has decided to cancel the 50-year-long petrodollar system agreement with the US. Some media reports claim that the deal was finalized last Saturday ie 8 June 1974. On June 9, Saudi Arabia and the US did not renew the deal.

Can be renewed again within 180
According to reports, it can be renewed any day in the next 180 days. Meanwhile, several reports are also claiming that Saudi Arabia is not ready to extend the deal. In such a situation now Saudi Arabia can sell its oil in any currency like Yuan, Ruble, Rupee etc.

This decision of Saudi Arabia is believed to lead to a major change in geopolitics. It is believed that due to this, the dominance of the dollar in the world market may suffer a big blow.

Dollar dominance may be affected
According to MSN, because Saudi oil is sold only in dollars, demand for it remains constant around the world. Even if more oil is sold, the supply of dollars will increase, and if the price of oil increases due to a decrease in oil production, the value of the dollar will also increase. However, neither the US nor Saudi Arabia have yet confirmed the cancellation of the deal.

According to The New Arab report, for decades it has been believed that a petrodollar system was in place between the US and Saudi Arabia, linking oil and the dollar. However, no evidence has yet been found that this deal was for 50 years.

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