The war in Iran and the disruption of shipping through the Strait of Hormuz have renewed an old debate about the foundations of American global power. Oil has been central to the geopolitical order dominated by the United States since World War II. The dollar is the principal international currency, oil is…

Dollars are the blood flowing through the arteries of the world’s financial system. Most global trade is invoiced and settled in dollars. Many economies use dollars as their default currency. This gives immense power to the institution that creates them: the Federal Reserve. When the Fed decides to raise interest…