The US dollar is currently experiencing headwinds, as tensions surrounding the US-Iran war continue to pile up rapidly. The war, however, has been quite favorable for the USD’s growth, as rising inflation fears have kept the dollar standing tall amid its peers. However, a new predicament is now ready to gnaw at the US dollar’s prestige, as the Yuan continues to be a tough dollar competitor. In addition to this, Indian refineries are now taking a step forward to reduce their dollar dependence by making payments in rupees to Russian oil refineries. What is this development all about? Lets explore in depth.

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Alternative Currency Usage: India is Paying Russian Refineries in Rupees.

Per a latest report by the Business Standard, Indian refineries are currently making use of the Indian rupee to make payments to Russian oil refineries and sellers. This money is later deposited into special overseas Russian accounts, certain people familiar with the matter told the aforementioned media portal. The report later shared that these transactions are then converted into Yuan and Dirham, signaling less exposure towards the USD.

The US had earlier granted India permission to explore Russian oil amid the rising US-Iran conflict. These alternative currency transactions by Russia hint at the nation’s attempt to limit its exposure to the US policy, cutting reliance on the dollar significantly. Moreover, these Russian firms are also keen on receiving payments in Singapore dollars and Hong Kong dollars, depending on the convenience of the buyer, or their bank’s transaction abilities, one of the people familiar with the matter later said.

This shift has appeared at a time when the US-Iran war has disrupted the global oil flow. The closure of the Strait of Hormuz is significantly impacting the global oil prices, which is sparking fears of inflation across major economies.

Australia’s Fuel Crisis, Iran’s Five Conditions, and More

In the middle of this, a latest post by the Kobeissi letter states that over 500 stations in Australia have run out of fuel. Out of these, 187 have completely run out of diesel, while 32 service stations have run out of all types of fuel, making the situation grave.

“BREAKING: Over 500 gas stations in Australia have now run out of fuel as the nation’s fuel crisis worsens. Of these, 187 had completely run out of diesel, while 32 service stations had run out of all types of fuel.”

Moreover, Iran has rejected the US’s peace proposal initiative by sharing five crucial conditions that it wants the US to obey first. Among the conditions listed by Iran, the country wants the US to end all its attacks and assassination attempts on Iran, followed by delivering guaranteed payments for war damages.

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