The End of the Petrodollar: US-Gulf States Agreement Collapses
An economic agreement between the US and Gulf states that has existed since 1974 has failed. The arrangement, which Henry Kissinger negotiated at the time, stipulated that the US would guarantee stability in the Middle East, while the Gulf states would reinvest their oil revenues in US government bonds. This system, known as a "virtuous cycle" and which shaped the global financial order, no longer functions.