Blamed for rising oil prices, the United States has seen its international leadership declining as countries lodge complaints over its hegemony and indifference toward the depreciation of the dollar. The International Energy Agency (IEA), an intergovernmental organization grouping 27 major energy-consuming countries, believes the rising oil prices are attributed to shortages in oil supply instead of speculation. The Organization of Petroleum Exporting Countries (OPEC), however, argues that the supply and demand in the international energy market are largely in balance. It even suggests that the oil supply may have exceeded demand. It therefore puts the blame for high oil prices squarely on speculation. Despite their conflicting views, the two organizations agree that high oil prices are fueled by tense international relations and the weak dollar, for which both hold the United States accountable.

As beneficiaries of high oil prices, major oil producers, such as Russia, Iran and Venezuela, have been able to boost their international status with their swelling petrodollars. They have openly defied the United States on some international issues, posing a challenge to its leadership. Russia has refused to compromise on hotly contested issues such as the eastward expansion of NATO and America's deployment of missile defense systems in Europe. Russia supplies more than 40 percent of Europe's total gas demands. Europe has no choice but to rely on it for fuel. Iran, the most promising oil producer in the Middle East, has also reaped huge benefits. Taking advantage of its oil reserves, it can bring in large amounts of foreign investment and equipment to reinvigorate its domestic production and offset America's economic sanctions and political pressure. Iranian President Mahmoud Ahmadinejad visited Pakistan, Sri Lanka and India on April 28-29 to push for an early start of the Iran-Pakistan-India gas pipeline project, which has been shelved for 14 years. The strengthening strategic relations between India and Iran have deeply concerned the United States.