#bankcrupt — Public Fediverse posts on home.social

how #fossilfuel #energy #dependency #bankcrupt #nations: #usa #israel #war on #iran raises #oilprice and with it the #petrodollar: Transaction demand: Crude is invoiced in dollars, so when oil prices jump buyers and exporters need more USD to settle trades and hold reserves, lifting dollar demand and value. European Union
Petrodollar recycling: Oil-exporting countries receiving larger USD revenues often reinvest into dollar assets (e.g., Treasuries), increasing capital flows into the U.S. and supporting the USD. Medium
Interest-rate/yield channel: Higher oil-driven inflation can prompt the Fed to keep rates higher (or markets price higher expected U.S. yields), attracting foreign capital into U.S. bonds and equities, which bids up the USD. Yale University https://www.youtube.com/watch?v=XxTC-2NDLS0