Petroyuan

The mystery of Saudi Arabia. In 1945, FDR reached an agreement with Saudi Arabia to provide aid and they would sell their oil only for dollars thus the term petrodollar came into usage. When the US promised aid they meant military protection against any country who tried to take over the Saudi oil. Almost all of Saudis military equipment is from the USA. This means that all spare parts will also come from the USA and it means that Saudi is dependent on the USA for their national defense. Thus the conundrum. For years Saudi has maintained good relations with the USA for protection but now they are getting friendly with their arch enemy in the Middle East, Iran. Over the years most experts believe that the only thing that kept Iran from attacking Saudi and taking their oil was the fear of retaliation from the USA. Is that fear still there. Will Iran take over Saudi oil. China recently brokered a deal between Saudi and Iran to resume relationships. Has Chine agreed to protect Saudi from foreign invasion and in return change petrodollar to petroyuan.