In a world of nearly 8 billion people and 195 nations, one country stands out for its relentless pursuit of influence: the United States. From regime changes to military interventions, America's actions often trace back to a single piece of paper—the US dollar. This "petrodollar" system, where global oil trade is priced in dollars, has sustained US superpower status for decades. But any nation daring to challenge it faces severe consequences.
A famous old joke captures the irony: Why has there never been a coup in America? Because there's no US embassy in Washington. Yet, since World War II, the US has attempted to overthrow or destabilize governments in dozens of countries—often more than 100 times, according to Columbia University professor Jeffrey Sachs. Between 1947 and 1989 alone, there were at least 70 documented regime-change operations. Post-1989 efforts added dozens more, including in Serbia, Afghanistan, Iraq, Libya, Syria, Sudan, Iran, Ukraine, Georgia, Haiti, Venezuela, Grenada, Panama, and Pakistan.
America's military footprint is equally vast. Since its founding in 1776, the US has been at war or involved in conflicts for all but about 20 years—roughly 222 out of 239 years by some counts. This pattern reflects a strategy of global dominance, intervening in distant lands even when no direct threat exists.
At the heart of this dominance lies the petrodollar. Over 90% of global oil and gas transactions occur in US dollars. When oil is bought in dollars, those dollars become "petrodollars," recycled into US Treasury bonds, strengthening the economy and allowing cheap borrowing. This system emerged after the 1970s oil crises, when the US struck deals with Saudi Arabia and other OPEC nations to price oil exclusively in dollars in exchange for military protection.
The current Iran conflict, sparked under Donald Trump with Israeli backing, highlights the stakes. As Hormuz Strait disruptions drive up global energy prices, Trump downplays the pain, saying temporary shortages are inevitable before prices normalize. Yet the fallout hits hardest in import-dependent nations like Pakistan, Bangladesh, Indonesia, Singapore—and increasingly India, where fuel shortages are emerging in cities like Bengaluru and Mumbai.
America's energy paradox adds irony. The US holds 44–48 billion barrels of proven crude reserves and ranks among top producers, thanks to shale. But most US output is light, sweet crude from fracking, while Gulf Coast refineries—built decades ago for heavy, sour imports from Latin America and Canada—are optimized for heavier grades. Refineries require massive, costly upgrades to switch, so the US exports its high-quality light crude for premium prices and imports cheaper heavy crude to match refinery needs—profiting on both ends.
Globally, oil reserves concentrate power. Venezuela tops the list with ~303 billion barrels, followed by Saudi Arabia (~267 billion), Iran (~209 billion), Canada, Iraq, UAE, Kuwait, Russia, and Libya. Iran, facing US-Israeli strikes, holds enough reserves for centuries at current rates and ranks second in natural gas. Sanctions cripple Venezuela's exports despite its vast holdings.
Challenges to the petrodollar invite retaliation. In 2000, Saddam Hussein switched Iraq's oil sales under the UN Oil-for-Food program from dollars to euros, converting millions in reserves. Three years later, the US invaded on false WMD claims—none found—toppling Saddam. Oil sales reverted to dollars.
Similarly, Libya's Muammar Gaddafi proposed a gold-backed "gold dinar" for African trade in the late 2000s, backed by accumulated Libyan gold reserves (~150 tons reported). As African Union chair, he gained support from nations like Nigeria and Egypt. In 2011, NATO intervention—citing human rights—led to his ouster and death. Libya descended into chaos.
These cases illustrate a pattern: Nations threatening dollar hegemony face destabilization. Professor Sachs notes the US denies many operations, but evidence points to a strategy preserving financial dominance.
Today, BRICS (Brazil, Russia, India, China, South Africa, plus Iran, UAE, Egypt, Ethiopia) challenges this order. Representing ~37% of global GDP and 45% of population, BRICS proposed a new currency in 2024–2025 pilots: the "Unit," backed 40% by gold and 60% by member currencies. This reduces dollar reliance, lowers transaction costs, and hedges against sanctions. BRICS controls significant gold production and reserves.
India plays a key role. In 2022, it announced rupee-based trade with partners, prompting foreign banks to open branches. RBI has aggressively bought gold since 2017, reaching ~880 tonnes by late 2025—ranking India 8th globally (behind US at 8,133 tonnes, Germany, Italy, France, Russia, China, Japan). Household gold adds tens of thousands more tonnes.
Historically, the Indian rupee held sway in the Gulf until the 1960s. Post-independence, Gulf nations like Oman, UAE, Qatar, Bahrain, and Kuwait used rupees (including special Haj series notes). Economic crises in the 1960s devalued the rupee, prompting them to adopt dinars and riyals—now among the world's strongest, tied to oil wealth.
Had the rupee persisted, its status might rival the dollar today. Instead, petrodollar dominance endures—but cracks appear. BRICS' gold-linked push, India's rupee internationalization, and growing de-dollarization signal a multipolar shift.
The US dollar's supremacy has enabled unparalleled influence, from interventions to economic leverage. Yet history warns empires built on currency control eventually face challengers. When alternatives gain traction—whether euros, gold dinars, or BRICS units—the petrodollar throne may wobble. The Iran war, Venezuela's capture, and BRICS moves underscore one truth: In geopolitics, oil isn't just fuel—it's power, and the dollar is its throne.
Sajjadali Nayani ✍
Friday 🌎 World March 15, 2026
