Persia and the Petro-euro

Economics, Geopolitical, Premium POM

Iranian Crude and the Multilateral Middle East

By JC Collins

Iran has recently announced that they will be accepting crude debt payments from foreign buyers in euros as opposed to dollars. New crude sales will also be denominated in euros instead of dollars. Many will remember that Iraq began selling crude in euros in the lead up to the American invasion. This fact has been presented as the main reason for that war.

The thought process is that the US most stop other countries from selling crude in anything but the dollar so that it can continue running up budget deficits back home. Though there is some supportive evidence for such a claim, the complexity of the second Iraq war, and any future war, would suggest a more diverse set of circumstances and casus belli for the ensuing death toll and humanitarian crisis.