Oil is traded in US dollars, no matter where you are in the world or who you buy it from. So, for example, if Honda in Japan wants to buy xx million gallons of oil from Saudi Arabia, it has to buy x million dollars from the US Treasury. The US economy is thus over-inflated given that they don’t have enough assets to cover the amount of money they’ve printed.
This is sustainable so long as the world keeps the status quo. Saddam Hussein proposed opening an oil exchange in Euros. This was the major ‘unknown’ factor behind the US invasion of Iran.
Irag are now proposing the same. For three years the US have been building a case to justify their next move. Just like the invisible WMDs (which were never found, despite being the entire basis for the war) the nuclear thing is just a smokescreen.
Yes, the US Government want the price of oil to go up and keep going up because once it’s gone, the whole financial pack of cards is going to collapse.