A commentary by Reuters columnist Mike Dolan examines how regional conflict and shifting trade patterns are testing the traditional petrodollar system. According to U.S. Treasury data cited in the analysis, Saudi Arabia and the UAE hold nearly $250 billion in U.S. Treasuries, while Deutsche Bank notes Saudi oil exports to China are now four times larger than those to the United States. The piece highlights growing scrutiny over non-dollar settlements, including the petroyuan, and the evolving economic alignment between Gulf producers and Asian markets.
The US Treasury determined that Executive Order 13902 applies to Iran's automotive and rail sectors, effective October 1 with no wind-down period. The measures target Iranian manufacturers alongside international suppliers based in the UAE, Hong Kong, and mainland China. Foreign financial institutions facilitating transactions in these sectors now face secondary sanctions exposure.
Senior U.S. senators Jeanne Shaheen and Roger Wicker have urged Secretary of State Marco Rubio and Treasury Secretary Scott Bessent to enforce sanctions under the newly enacted Lindsey O. Graham Sanctioning Russia and Iran Act of 2026. The lawmakers called for penalizing front companies and intermediaries in Dubai and Hong Kong, as well as dual-use tech supply lines in China, the UAE, and Türkiye. The majority of the legislation's provisions enter into force on October 18, 2026.
The U.S. Treasury Department has expanded Iran sanctions to encompass the automotive and railway sectors. The measures designate 30 individuals and entities, including trading firms based in China, the UAE, and Indonesia. Sanctioned targets face asset freezes within the United States and financial transaction bans.
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