Sean Foo: Petrodollar Ending as Yellen Issues Ultimatum to Global Banks

In a bold and potentially risky move, the US Treasury has recently designated Russia as a ‘war economy’ and is threatening to sanction any global bank that continues to do business with Moscow. This decision comes in the midst of escalating tensions between Russia and Ukraine, with the US hoping to exert financial pressure on Russia to alter its behavior. However, this strategy may backfire, as it could result in a significant repricing of Russian oil in China’s currency, the yuan. This shift could have far-reaching consequences for the global economy, particularly in the energy sector, and could further strain…