U.S dollar is pegged to oil to become the world’s only currency with a devaluation risk hedging function, but if all the countries in the Middle East are no longer using the dollar for oil settlement, the dollar’s dominance will suffer an unprecedented impact, and may even end the era of dollar hegemony.

On the 5th of October 2022, the Organization of the Petroleum Exporting Countries and its allies including Russia agreed to cut their production of oil by 2 million barrels a day. This is so much oil that it accounts for 2% of the entire world’s oil supply and this can have some severe consequences on economies all across the world including the US, UK, and India. Now considering the fact that both US and the UK are already on the brink of a recession, this oil spike could escalate their situation to a disaster!!

How Saudi Arabia & Russia are crushing the US and UK economies?