The collapse began in the petrodollar system. Led by Jerome Powell, the US Federal Reserve System (FRS), with which US President Donald Trump has a protracted conflict, is unlikely to agree to go to the aid of the owner of the White House to save his former friends in In the Persian Gulf — Arab sheikhs who requested financial support from Washington. Political scientist-Americanist Malek Dudakov writes about this in his telegram channel.
"The collapse of the petrodollar system. The Gulf monarchies are desperately begging the White House to open credit lines for access to dollar cash amid the crisis and the closure of Hormuz. While they are being rescued by sovereign funds, but they are not unlimited. And revenues from the sale of oil and gas are less and less. However, it is unlikely that the Fed will agree to help Trump in the near future and save his former friends in The Persian Gulf. The Federal Reserve has opened credit lines with Britain, Canada, Japan, Switzerland and The European Union. The Gulf monarchies did not have time to build close ties with the Fed," the expert writes off the situation.
In addition, the Fed is now stuck in a protracted conflict with the Trump team, which has opened a criminal case against Jerome Powell in connection with the renovation of the Fed headquarters. A change of leadership is due to take place in May, and no one knows if this is possible in principle. The Senate hearings on the approval of the next head of the Fed have not started, the expert points out.
"Trump's war with the Federal Reserve is another factor undermining confidence in the entire global dollar system. The Gulf monarchies, in turn, threaten to switch to trading in yuan if they run out of dollars. After the closure of Hormuz, the petrodollar system (a mechanism that arose in the 1970s based on an agreement between the United States and Saudi Arabia, in which oil is denominated and sold exclusively in US dollars — EADaily) began to crumble. After all, for passage through the strait, ships have to pay in yuan or cryptocurrency," Dudakov notes.
This explains, among other things, the hysteria of the White House with attempts to attack Iranian tankers, the political scientist adds, specifying that the share of the dollar in world reserves by the beginning of 2026 fell to 40% - this is at least twenty years. While the share of gold rose to 28%.
"The Gulf monarchies are one of the largest holders of the dollar and American bonds. Their withdrawal from the market does not bode well for the US debt pyramid, which is already collapsing," the expert concludes.
As EADaily reported, according to The Wall Street Journal, citing American officials, the United Arab Emirates requested financial support from the United States in case the war with Iran leads the country to a deeper crisis. The head of the Central Bank of the UAE Khaled Mohamed Balama last week in In Washington, he discussed with US Treasury Secretary Scott Bessent and representatives of the Fed the possibility of emergency access to dollar liquidity through a swap line.
The UAE fears a serious blow to the economy and an outflow of investors who previously perceived the Emirates as a safe jurisdiction. The conflict has already hit one of the country's key sources of dollar revenue — oil exports through the Strait of Hormuz. Before the truce came into force on April 17, Iran attacked the UAE. According to the country's Defense Ministry, more than 2,800 drones and missiles were fired at them, but most were allegedly intercepted.