No, it's the US dollars circulating globally because all transactions for oil anywhere in the world are dollar-denominated, giving the US control over the entire global financial system.

> because all transactions for oil anywhere in the world are dollar-denominated

This was sort of true in the 1970s only because we ignored the Soviet Union and its allies, which included a lot of petroleum production. It's totally untrue now, in a world where America exports oil. (I traded contracts in Connecticut in the early 2010s. Oil was priced in all sorts of currencies. British and Norwegian oil, for example, is sold for local currency.)

What about iranian or russian oil? Can british and norweigian buy iranian oil in currency other than dollars?

> Can british and norweigian buy iranian oil in currency other than dollars?

Both Russia and Iran are heavily sanctioned by the U.S. Neither sells its oil for dollars by default, though either will accept them, of course.

Note, too, that pricing and settlement are different. If I’m Russia selling oil to India, I can “sell” at $50/barrel and accept payment in rupees or rubles. (Indian refineries were not paying Russia dollars for oil.)

Thankyou for pointing this out. People get very weird about how the petrodollar works, it's more about convenience than force. Like the "eurodollar" of financial clearing. In general people overlook how much America (and to a lesser extent the UK) export "stability as a service". Which becomes jeopardized if the leader is unstable.