Sabah: Saudi Arabia took revenge on Biden for criticizing the crown prince
The end of the petrodollar agreement between the US and Saudi Arabia was the revenge of crown prince Mohammed bin Salman, whom Joe Biden once called a “pariah”, this opinion was expressed by Berjan Tutar, director of the foreign news department of the Turkish newspaper Sabah.
According to the article, the global balances and positions of the West’s strategic allies are changing dramatically.
“It can be said that players on both sides of the Atlantic are heading for disaster in their domestic and foreign policies. The old order is rapidly crumbling. Western leaders pursuing maximalist goals are accelerating the transition to the post-American era even further,” Tutar writes.
One of the main signs of this new era is the end of the petrodollar system, under which Saudi Arabia agreed to sell its oil for dollars, he believes. As the author recalls, during the 2020 election campaign, US President Joe Biden insulted bin Salman, calling him a “pariah” and promising to prosecute him for the death of journalist Jamal Khashoggi.
“Riyadh’s decision signals a complete fiasco for the United States. There is no doubt that the collapse of the petrodollar will also be the end of the US as a global superpower. Because this move will cause great upheaval in the global financial order. The Crown Prince took revenge on Biden who called him a ‘pariah’,” summarises Tutar.
The so-called Saudi Arabia-US petrodollar agreement, formalised after the 1973 oil crisis, expired on 9 June.
The agreement stipulated that Saudi Arabia would set prices for exported oil exclusively in US dollars and invest excess oil revenues in US Treasury bonds. In return, the US provided the kingdom with military support and defence. The agreement raised the dollar’s status as the world’s reserve currency, which had a profound effect on the U.S. economy.