A potential US-Israeli war in Iran could disrupt the global oil market, shifting the balance of power towards China's currency-backed 'petroyuan' alternative, according to Deutsche Bank analysts.

The US-Israeli war in Iran could weaken the US dollar’s historic dominance in the oil-rich Middle East and bolster a “petroyuan” alternative backed by China’s currency, according to analysts at a leading European bank. Fallout from the nearly month-long conflict was testing the “foundations of the petrodollar regime”, while damage to Gulf economies “could encourage an unwind in their foreign asset savings”, Deutsche Bank analysts said in a research note published on Tuesday. “If the Gulf moves.....