>the USD doesn't have strength and power because oil sales are denominated in dollars. You have it backwards.
Not quite. The "petrodollar" deal has helped to bootstrap and anchor the USD strength at a somewhat critical moment of history after the gold peg was "temporarily" suspended, which was effectively a default of the US government (second in the 20th century!).
Sure, today trade of oil in USD no longer plays a significant role in supporting its dominance, but it still plays a role. Together with other factors (such as increased weaponization of the USD-led financial system) rise of alternative settlement systems corrodes the network effects on which USD relies. Each blow in isolation may be insignificant, but their accumulation could become critical owning to the extreme non-linearity of the network effects.
Not quite. The "petrodollar" deal has helped to bootstrap and anchor the USD strength at a somewhat critical moment of history after the gold peg was "temporarily" suspended, which was effectively a default of the US government (second in the 20th century!).
Sure, today trade of oil in USD no longer plays a significant role in supporting its dominance, but it still plays a role. Together with other factors (such as increased weaponization of the USD-led financial system) rise of alternative settlement systems corrodes the network effects on which USD relies. Each blow in isolation may be insignificant, but their accumulation could become critical owning to the extreme non-linearity of the network effects.