Saudi Arabia has decided not to renew its 80-year petrodollar agreement with the United States, which expired on June 9, 2024[1][2][4][5]. This agreement, originally signed in 1974, established the US dollar as the world's reserve currency for oil transactions[3][5].

The crucial decision enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars[2][4]. This move signifies a major shift away from the petrodollar system and is anticipated to hasten the global shift away from the US dollar[2][4].

The petrodollar system has provided significant benefits to the US economy by ensuring continuous global demand for the dollar[1]. However, the decision by Saudi Arabia, along with the trend of countries reducing their dependence on the dollar, could mark the end of America's global financial dominance[5].

The consequences of this shift are yet to be fully understood, but it may lead to higher interest rates, more expensive mortgages, rents, loans, and potentially higher taxes in the US[5]. The value of the dollar itself could also be affected, making international purchases more expensive[5].

Sources [1] BRICS Officially END The Petrodollar: What next? - YouTube [2] Saudi Arabia's petro-dollar exit: A global finance paradigm shift https://www.tbsnews.net/world/global-economy/saudi-arabias-petro-dollar-exit-global-finance-paradigm-shift-875321 [3] Saudi Arabia Petro dollar : Saudi Arabia has recently abandoned ... https://www.cgwall.com/sports/saudi-arabia-petro-dollar-saudi-arabia-has-recently-abandoned-the-us-dollar/ [4] Saudi Arabia's petro-dollar exit: A global finance paradigm shift https://www.bizcommunity.com/article/saudi-arabias-petro-dollar-exit-a-global-finance-paradigm-shift-670911a [5] Saudi Arabia Just Ditched The U.S. Dollar - IslamiCity https://www.islamicity.org/101965/saudi-arabia-just-ditched-the-u-s-dollar/

I can't seem to find a reliable source for this either, but it's circulating. It looks like we were negotiating an arms deal around the same time, so maybe it got extended?

This just popped up on YT.

Lets say it did end.... Where would Saudi get its military equipment from? Russian equipment has been shown the be terrible so the Saudis would want to buy only the best. That leaves them with Western equipment which they can see the results of compared to Russian in Ukraine or possibly Chinese but that equipment isn't battle-proven like the other two.

Saudi oil depends on US missile interceptors and which have shown to be worth every penny... the Patriot system is mostly 80's and 90's technology and is still knocking top-of-the-line missiles outta the sky. Not to mention the US is the largest oil producer and if someone like Trump was elected and he went drill baby drill and flooded the oil markets it would destroy these oil countries' economies.

For Saudi there isn't a lot to gain from wading to far away from the USD if this is the case. I could see the US being okay with them also using the Euro but if they start deciding to use the Yen or Rubble it isn't a intelligent move when the Crown Prince is a hell of a smart guy

I was doing some digging on this earlier and came across this BIS article from June 5 that mentioned Saudi Arabia is joining mBridge as a full participant:

Project mBridge continues its development and has reached the minimum viable product (MVP) stage, while broadening its international reach. The project aims to explore a multi-central bank digital currency (CBDC) platform shared among participating central banks and commercial banks, built on distributed ledger technology (DLT) to enable instant cross-border payments and settlement.

Project mBridge is the result of extensive collaboration starting in 2021 between the BIS Innovation Hub, the Bank of Thailand, the Central Bank of the United Arab Emirates, the Digital Currency Institute of the People's Bank of China and the Hong Kong Monetary Authority. The Saudi Central Bank is joining mBridge as a full participant. There are also now more than 26 observing members.

I'm a firm believer in things aren't often just coincidences. The fact this was updated on the 5th mentioning Saudi Arabia was joining with the agreement set to expire on June 9th seems just too easy to connect.

From my view, a lot of trade will still be conducted over the dollar - it just now opens it up to the fact that its market share for trade is bound to diminish. Whether it's China, Russia, or some African player - they know will cut into that percentage.

I don't think this is a net positive for the U.S.

I have already heard this on several YT channels that talk about Geopolitics (PandaStaker the best of all without a doubt) And I think that if this happens it would be a hard blow for the dollar, and I think that perhaps it is possible considering that this year Saudi Arabia accepted the invitation to BRICS+ where Saudi Arabia, Egypt, the United Arab Emirates, Iran, among others, joined. so the US military protection of which the agreement was part may no longer be dispensable, it is now taken care of by the BRICS Block. In addition, this allows it to trade with China and Russia, who are strongly de-dollarizing.

I think it'll slowly destabilize the country then exponentially. In a similar fashion like inflation

I can’t find any mainstream sources

looks like we're going to war with the saudis.