China, the BRICS countries (Brazil, Russia, India, China, and South Africa), and OPEC+ are making moves to challenge the dominance of the US dollar in global oil trade. The expansion of BRICS to include oil-rich nations like Saudi Arabia and Iran could be a strategic move to challenge the petrodollar system. China and India are increasingly making deals to buy OPEC+ oil in currencies other than the US dollar, such as the Chinese yuan (petroyuan).
Russia is seeking to diversify its energy partners to circumvent Western sanctions, with the BRICS countries now accounting for 90% of Russian energy export payments. Saudi Arabia, a traditional US ally, has moved closer to China and Russia under Crown Prince Mohammed bin Salman and is considering joining BRICS.
The BRICS nations are looking to establish a new reserve currency backed by a basket of their respective currencies, which would allow them to assert their economic independence and compete with the US dollar-dominated international financial system. This could potentially lead to a decline in demand for the US dollar (de-dollarization) and significantly impact its global dominance.