BlockBeats News, August 26th. Saudi Arabia has recently worked with Turkey and Pakistan to promote the "Mecca Agreement" and is considering inviting Iran to join, sparking discussions in the market about the future of the Middle East security landscape and the "Petrodollar" system. Analysts believe that the more significant implication of this arrangement may not simply be to strengthen regional military cooperation but to reflect that some Middle Eastern countries are seeking to reduce their sole reliance on U.S. security.

The "Mecca Agreement" envisions establishing a collective security mechanism among member countries, where any armed attack on one member is considered an attack on all members. If Iran eventually joins, this mechanism would bring Saudi Arabia, Turkey, Pakistan, and Iran into the same security framework, creating a regional cooperation network spanning Sunni and Shia countries.

This shift also touches upon the core logic of the Petrodollar system. For a long time, the U.S. has maintained a relationship where it provides military security to Gulf oil-producing countries like Saudi Arabia, linking this security to the pricing of oil in dollars and the allocation of dollar assets. Middle Eastern countries sell oil to receive dollars, then allocate some of these dollars to U.S. assets like Treasuries, with the U.S. maintaining this cycle through security commitments.

Now, as the security situation in the Middle East deteriorates and the U.S. continues to confront Iran, some countries are beginning to reassess the U.S.' ability to provide regional security. If Gulf countries gradually establish a more diversified security and financial cooperation system in the future, their willingness to continue settling oil in dollars and allocating a significant portion of oil revenue to dollar assets may be affected.

In the short term, the dominance of the dollar is still difficult to replace, and the U.S. Treasury market will not immediately undergo a structural reversal due to a single regional agreement. However, from a long-term perspective, if the U.S. cannot consistently provide security that matches its international status for the dollar, the trust of oil-producing countries in the Middle East in the dollar system may gradually decline, posing a potential risk that the dollar, U.S. Treasuries, and the global reserve currency system need to pay attention to.