Iran War Threatens Dollar Dominance, Could Trigger 'Petroyuan' Shift: Deutsche Bank

• Deutsche Bank warns the US-Israel-Iran conflict could accelerate the erosion of the US dollar's dominance in global energy trade and reserves.
• Strategist Mallika Sachdeva states the war may become a "perfect storm for the petrodollar," threatening the system established by the 1974 US-Saudi agreement.
• The report highlights a structural shift: Asia now dominates Middle East oil demand, with China pushing yuan-based trade and sanctioned oil already trading outside dollar channels.
• Security uncertainty from the conflict, including attacks on US bases and Gulf infrastructure, tests the assumption of US military protection for oil flows.
• Deutsche Bank suggests the conflict could be a catalyst for the "petroyuan," leading to a fragmented oil market where Asian trade is priced in yuan and Western trade in dollars.