Throughout that interval, Wight reveals, the phrases of the alternate between the USA and the related MENA actors (initially Iran and Saudi Arabia) modified radically. As a substitute of supplying low-cost oil, the oil-producing nations now supplied ample petrodollars. Washington needed to settle for increased oil costs and extra unruly companions, keen now to make use of oil as a political and diplomatic weapon, however wanting to protect U.S. safety and acquire high-tech weaponry. In alternate, the USA preserved its hegemony, loved worthwhile alternatives for exporting its items and companies to those immensely prosperous however nonetheless underdeveloped companions, and — extra necessary — discovered an apparently limitless supply of funding for its banks, monetary companies and public debt. By the early Eighties, for instance, the Saudi share of the U.S. Treasury securities held overseas approached $40 billion, nearly 30 % of the whole, and Riyadh decisively contributed to finance American deficits due to its $20 billion petrodollar deposits in the USA.
https://www.washingtonpost.com/outlook/how-petrodollars-rearranged-the-world/2021/08/11/3474aee2-ca09-11eb-81b1-34796c7393af_story.html | E-book overview of Oil Cash: Center East Petrodollars and the Transformation of US Empire, 1967-1988 by David M Wight