Gate News Report, March 17 — As tensions in the Middle East continue to escalate, control over the Strait of Hormuz has become a central issue in global financial risks. Ray Dalio, founder of Bridgewater Associates, pointed out that if the U.S. loses dominance over this critical shipping lane, the foundation of the U.S. dollar as the global reserve currency could face significant impact.
In his latest analysis, Dalio compares the current situation to the Suez Crisis, suggesting that weakening geopolitical control often signals an impending shakeup in the monetary system. He emphasized that if Iran maintains or threatens control of the passage, it could be seen as a sign of declining U.S. global influence, undermining the confidence of allies and creditors, and leading to a reevaluation of dollar-denominated assets.
Meanwhile, Balaji Srinivasan offers a more radical view, suggesting that if the conflict escalates to extreme levels, it could accelerate the collapse of the “petrodollar system” and trigger chain reactions in the global monetary order. Especially if energy trade settlement methods change, the dollar’s dominance may be challenged.
As a key node in global energy transportation, the Strait of Hormuz handles about 20% of the world’s oil trade. Reports indicate Iran has proposed allowing limited tanker passage, but only if settled in RMB, which is seen as a direct challenge to the dollar settlement system.
On the macroeconomic front, risks are also rising. Mark Zandi noted that before the conflict escalates, the probability of a recession is already close to 50%. Rising oil prices could become a critical trigger for economic downturns. Historical data shows that rapid oil price increases are often closely linked to turning points in the economic cycle.
Against this backdrop, the interconnected effects of geopolitics, energy markets, and the monetary system are strengthening. The situation in the Strait of Hormuz not only concerns regional security but could also have profound implications for the global financial landscape.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
White House Mediates Clarity Act Stablecoin Dispute, Witt Reveals Legislative Timeline
Patrick Witt announced at the Solana Policy Institute summit that the White House mediated a stablecoin dispute to advance the Clarity Act. The compromise allows banks and crypto firms to together address regulatory concerns, with future focus on crypto taxation and blockchain integration strategies among financial institutions.
GateNews1h ago
U.S. Energy Department to Release Third Batch of Strategic Petroleum Reserve, Loaning Over 26M Barrels to Nine Oil Companies
The U.S. Department of Energy will loan over 26 million barrels of crude oil to nine companies, marking the third release of strategic reserves since the U.S.-Israel-Iran conflict began, aimed at moderating oil prices. Delivery is set for May and June 2026.
GateNews1h ago
Trump Says Iran-Related Progress Looking Very Positive; Nuclear Weapons Prevention Is Top Priority
U.S. President Donald Trump reported "very positive" developments concerning Iran, focusing on preventing the country from obtaining nuclear weapons, following recent favorable news.
GateNews4h ago
Economist Proposes National USD Stablecoin to Eliminate Currency Controls in Venezuela
Alejandro Grisanti, head of Ecoanalitica, proposed issuing a national USD stablecoin as part of a series of measures to lift currency controls in Venezuela. This system would complement the current auction system, allowing the excluded sector to receive dollars via blockchain rails.
Key
Coinpedia5h ago
U.S. Treasury Issues General License 135 Authorizing Russian Crude Oil Transactions Through May 17
The U.S. Treasury's OFAC issued General License 135, permitting specific Russian energy transactions impacted by sanctions, allowing necessary deliveries and repairs for cargo loaded before April 17, with a deadline for completion by May 17.
GateNews6h ago
Sanctioned Exchange Grinex Hit by $13.7M Hack; Blames Foreign Intelligence Services
Grinex, a sanctioned crypto-ruble exchange, has halted operations due to a cyberattack that stole over $13.74 million in USDT. The attack is believed to involve state-level actors aiming to destabilize Russia's financial system. Grinex is cooperating with law enforcement but has no timeline for resuming services.
Coinpedia6h ago
