The Strait of Hormuz and the Partial De-Universalization of the Petrodollar
Chokepoint Power and Settlement Control in the Gulf Energy Order
- Shaoyuan Wu
Global AI Governance and Policy Research Center, EPINOVA LLC
https://orcid.org/0009-0008-0660-8232
Description
This journal article analyzes the Strait of Hormuz as both an energy chokepoint and a strategic settlement node. It argues that the petrodollar system is not collapsing immediately, but is being partially de-universalized through chokepoint power, access-based settlement control, and fragmentation in the Gulf energy order. The article introduces Chokepoint-Driven Settlement Shift (CDSS) as a framework for understanding how control over critical maritime nodes can condition payment practices without creating a full alternative monetary order.
Abstract
The Strait of Hormuz is usually understood as an energy chokepoint, but its strategic significance extends beyond oil supply and maritime security. Under conditions of conflict, blockade pressure, and asymmetric access control, Hormuz may also become a settlement node capable of reshaping how payment authority is distributed in the global energy system. This article argues that recent dynamics around Hormuz do not signal the immediate collapse of the petrodollar system. Instead, they point to a subtler transformation: the partial de-universalization of petrodollar settlement. Iran’s position is structurally distinctive because it is not merely a sanctioned actor attempting to bypass the dollar system. It is also a major oil-and-gas producer and a Hormuz-adjacent power capable of converting chokepoint access into a settlement condition. The article introduces Chokepoint-Driven Settlement Shift (CDSS) to explain how the ability to condition access at critical nodes may transform payment practices from market-wide monetary consensus toward node-conditioned acceptance and access-based value recognition. At the same time, this transformation should not be overstated. Chokepoint power can monetize access and reshape payment conditions, but it does not automatically create a full alternative monetary order or a durable regional value system. The UAE’s announced withdrawal from OPEC and OPEC+ effective May 1 adds a secondary layer to this fragmentation by weakening the assumption of cohesive Gulf production governance. The petrodollar system is therefore not collapsing at once; it is being selectively conditioned, interrupted, and regionally de-universalized through chokepoint power, settlement control, and broader fragmentation in the Gulf energy order.
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Keywords
- Strait of Hormuz
- Petrodollar
- Energy Security
- Chokepoint Power
- Settlement Control
- Chokepoint-Driven Settlement Shift
- Access-Based Value Recognition
- Gulf Energy Order
- Global Order
Subjects
- International Relations
- Energy Security
- Geopolitics
- Monetary Order
- Maritime Security
- Middle East Studies
- Strategic Studies
- Political Economy
Recommended citation
Wu, S. (2026). The Strait of Hormuz and the partial de-universalization of the petrodollar: Chokepoint power and settlement control in the Gulf energy order. Geostrategic Pulse, No. 307, 62–69.
APA citation
Wu, S. (2026). The Strait of Hormuz and the partial de-universalization of the petrodollar: Chokepoint power and settlement control in the Gulf energy order. Geostrategic Pulse, No. 307, 62–69.
Alternate identifiers
| Scheme | Identifier | Description |
|---|---|---|
| URL | https://publications.epinova.org/epinova-2026-ja-01/ | EPINOVA publication record page |
| URL | https://www.pulsulgeostrategic.ro | Publisher homepage |
| URL | https://www.pulsulgeostrategic.ro/en/editii | Geostrategic Pulse printed issues archive |
Related works
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References
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