Tensions in the Middle East are escalating after Iran launched over 300 missile drone attacks against Israel on Sunday. The Iron Dome intercepted all the Iranian missiles but the situation remains grim with growing threats of war. Amid the Iran and Israel conflict, BRICS has called for the Middle East to ditch the US dollar for oil settlements.
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Russian President Vladimir Putin urged countries in the Middle East to teach Israel and the US a lesson. BRICS member Russia explained that ditching the US dollar for oil payments can bring America and Israel to a standstill. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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BRICS Urges Middle East To Stop Accepting the US Dollar For Oil Payments
The BRICS alliance strategically inducted oil-producing countries into the alliance this year in 2024. Oil-producing nations like the UAE, Egypt, Ethiopia, and Iran are now a part of the bloc. The alliance has also invited Saudi Arabia into the grouping but the Kingdom is yet to provide its decision.
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BRICS aims to topple the US dollar by making oil-exporting countries accept local currencies for oil and gas cross-border payments. If Saudi Arabia joins the bloc, the grouping will be stronger and can gain command of the global oil and energy sector.
Putin stressed that the Middle East and its oil sector hold the power to diminish the US dollar’s global supremacy. “If oil producers in the Middle East stop using the US dollar, it will be the end of the dollar,” he said.
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However, Middle Eastern countries are yet to pay heed to the BRICS call to use local currencies for oil settlements. The US dollar is widely accepted as payment for oil and gas and local currencies only form a small part of all trade and transactions.