Dollar dominance is being reinforced as sanctioned countries return to trading in dollars — framed as good news for US financial power.

• Sanctioned oil sellers are coming back to the dollar system, with Venezuela and Iran set to invoice their oil in dollars again.
• Selling discounted oil to China without getting paid in dollars was a losing setup for these countries.
• The dollar stays central because the US has the deepest, most liquid capital markets, so everyone still wants in.
• Russia is expected to want back into the dollar system once the Ukraine war ends.

Outlook: The US looks set to keep using dollar dominance as leverage — rewarding allies and pressuring rivals as more sanctioned states return to dollar-based trade.