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http://story.100.com/?rid=688397aa6f4f641f&cat=1b76a2b4cf7810bdMay 5, 12:32 PM EDT
Analysts Skeptical of Iran Oil Plan
TEHRAN, Iran (AP) -- Iran took a step on Friday toward establishing an oil market denominated in euros, a plan analysts described as highly unlikely to materialize but which in theory could have serious consequences for the U.S. economy.
Iranian state-run television said the country's oil ministry granted a license for the euro-denominated market, an idea first floated back in 2004, though just who would trade on it remains unclear.
If the market were to succeed - or if Iran simply demanded payment for its oil in euros - commodities experts said it could lead central bankers around the world to convert some dollar reserves into euros, possibly causing a decline in the dollar's value.
Oil is currently denominated in dollars around the globe, whether through direct sales between producers and consumers or in trades made on markets in New York and London.
"If OPEC decided they didn't want dollars anymore," he added, "it would signal an end of American hegemony by signaling an end to the dollar as the sole reserve currency status."