Is Iran attempting to start an oil market trading in Euro's? If they did what would be the impact on the U.S.?

Answer 1

I've heard about this possibly occurring but not necessarily at the behest of Iran. When the dollar is falling (or expected to fall), oil producers prefer to price their product in other currencies. Often other currencies are perceived as riskier than America either due to currency risk or political risk or economic risk.

Now that the Euro has emerged, it can be a viable alternative to pricing oil in dollars...provided Europe doesn't print money (inflationary) to get out of budget difficulties, provided Europe remains politically stable (ageing Caucasion population plus young disenfranchised Muslim population), and economically viable (that free trade truly is free trade within the union).

Other alternatives would be to price in Yen (Japan) or Yuan (China) or Pounds (UK).

Answer 2

I thought the whole war thing was about oil I really did. Then out of the blue the "Metro" a free newspaper in Toronto published a figure from the Albeta government saying we (Canada) sold more oil to the USA than the entire region of the middle east.

Now government statistics are just that but it does prove that we are all getting cheated at the pump because we are all under the impresion it's coming from a way over there. Alberta's tar sands are apparently floating us all and thats only the 3rd province over from me.

So when you ask if it matters if Iran makes a deal with Europe maybe .........they don't have Alberta sitting next door but then this war isn't about oil the way I thought it was.
I just wish I knew what it was about - sort of -

Answer 3

I have not heard of this. If they did, it would be pointless: both oil and dollars are fungible. So the effect on the US would be negligible.