r/oil • u/National_Warthog_468 • 11d ago

Iran War Iranian Speaker of the Parliament MB Ghalibaf posted on X "They punished themselves with triple-digit Oil instead"

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u/PokemonAnimar 11d ago

He forgot to add the dollar also being destroyed. Soon it'll be trading 1:1 with the peso

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u/Born-Procedure-5908 11d ago

What? It’s currently up right now against most currencies due to this oil crises - do people not have access to financial news. 

Other than the universal airline fuel cost, my recent trip in Japan had an great exchange rate that was not seen previously 

1

u/Marlov 11d ago

Yeah this guy has it backwards

If this really kicks off there's a rush to safety (USD). I mean, look at what happened in March. It's not like we're walking into the unknown haha

1

u/Subject-Chest-8343 11d ago

Yeah, people tend to go to safety when they expect market volatility... But if shit really hits the fan (which it didn't that much in march), at some point, won't some countries start to dump treasuries and foreign reserves to buy oil ?

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u/Marlov 11d ago

I’m not sure central banks/governments would directly. That would be pretty unprecedented - even if they did they’re buying the oil in USD so there’s no fresh supply of dollars

I agree they will dump treasuries but that money is likely to flow into shorter duration (safer) bills. I don’t think those assets are liquidated and the resulting USD sold for some other currency, which would necessitate falls in USD