The oil shocks of the 1970s transformed global finance in ways that still resonate today. When OPEC quadrupled oil prices during the 1973-74 embargo, it triggered gas lines across America and inflation that took years to control. But the real impact went deeper - these crises fundamentally altered how money flowed around the world.

What's less understood is how these shocks cemented the dollar's dominance as the world's core currency. Oil-producing nations accumulated massive dollar reserves, which they recycled back into the U.S. economy through loans and investments. This created a new era of global finance where petrodollars became the engine of international lending, particularly to emerging markets through major U.S. banks like Citibank.

The current conflict in the Persian Gulf could be the third great oil shock. Already causing the biggest interruption of oil supplies in history, it's creating shortages in Southeast Asia and raising prices globally. Unlike the 1970s when the U.S. was a net importer, America is now a net exporter of energy. Yet the dollar's remarkable resilience continues - it strengthened in value since the war began, just as it did during past crises.