The famous petrodollar pact between Saudi Arabia and the US, signed in 1974, has come to an end. The so-called “Security Agreement” was signed by Washington and Riyadh on June 8, 1974. It provided for the establishment of two joint commissions – on economic cooperation and on Saudi Arabia’s military needs. The U.S. persuaded the Saudis to trade oil only for dollars, in return promising security guarantees, arms sales, and so on.

The contract expired on June 9, 2024. The decision not to extend the contract will allow Saudi Arabia to sell oil and other goods in any currencies, including yuan, euros, yen, not only in U.S. dollars. In addition, the use of digital currencies such as bitcoin may be considered.

Curiously, the Saudis’ statement came just as the US announced new sanctions against Russia and its financial and energy sectors.