Iran's control of the Strait of Hormuz threatens the U.S. dollar's reserve status

Retail prices for groceries and other consumer goods increase as higher fuel prices raise the cost to produce and transport those goods. This occurs as oil prices skyrocket and fuel shortages emerge following the largest supply disruption in the history of the global oil market. The disruption is caused by the shutdown of the Strait of Hormuz, a transit chokepoint for one-fifth of the world's liquefied natural gas and a third of the world's crude oil. Iran is currently charging transit fees in yuan instead of the U.S. dollar. This shift encourages countries to diversify away from the dollar financial system to protect themselves from U.S. financial sanctions. Such diversification leads to the loss of the U.S. dollar's reserve currency status and the selling of U.S. debt assets. The U.S. dollar weakens relative to gold.