Quandary of Iran

Iran’s recent indication of setting up a petroeuro oil bourse can’t be overlooked. The change that Iran hints at might shift oil trade trend from petrodollar to petroeuro. Thus making euro an equal partner of dollar in the central banks of various countries across the world. If this is the case then American dollar hegemony will be in jeopardy. Keeping in view American fiscal deficit of the last couple of years and present crumbling state of dollar owing to the Afghan and Iraq wars, it is hardly possible that America tolerates a petroeuro trend in oil trade.