‘Petrodollar’ Exposed: The Root of Special US-Saudi Relationship

In a special segment, Anya Parampil speaks with In Question producer Kei Pritsker to examine the roots of the special relationship between Saudi Arabia and the United States. Kei explains how the alliance is based on Saudi’s ability to manipulate global oil markets through its petrol production, as well as the fact that Riyadh saved the US dollar following the collapse of the gold standard in 1971. Saudi’s decision to only accept the dollar for oil purchases in 1974 breathed new life into the US currency, the viability of which was in question following the Nixon Gold Shock.