Europe warns: Iran sanctions threaten US dollar dominance

European diplomats are warning that enhanced U.S. financial sanctions against Iran run the risk of forcing the rest of the world to create alternative banking systems that could undermine the long-time dominance of the U.S. dollar.

The issue has come up as the Trump administration considers aggressive sanctions aimed at expelling Iran from the international banking system. As the deadline for sanctioning Iran’s oil industry approaches, the spotlight has shifted to the Society for Worldwide Interbank Financial Telecommunication, an entity led by representatives of major banks from the world’s 10 largest economies that helps banks around the world communicate with each other on transactions.