alt Hacker NewsYes it tends to strengthen during times of conflict as countries buy more dollars in response. That's kinda the whole gimmick with the petrodollar. War is good for the US
But if Iran does successfully force countries to stop using the petrodollar by only allowing countries trading in yuan through the strait, then we could actually see that reverse. IMO destroying the petrodollar is the primary clear "victory" Iran could achieve from this war
Reserve currency status entirely depends on how effective the issuer is at dropping a precision-guided munition over anyone who dares to counterfeit it.
China is actually the second-best contender now due to its growing military prowess. But it still might not be at the level where it can carry out the aforementioned task anywhere in the world without exception, like the US can. Hence the dollar will most likely stay.