Longstanding dream of dealing oil in Euro in place of dollar, of Hugo Chavez seems to be taking shape as Iran has announced to shift its foreign currency reserves from dollar to euro. Therefore, now euro will be used for all oil deals of Iran in response to the increasing pressure on the economy mounted by U.S. led alliance. However the recent move cannot be treated as unexpected, the analysts were anticipating this move since few months. Tehran in its statement had said that it would use the euro for all future commercial transaction overseas. The latest move can be proved to be catastrophic for the U.S. economy as many other countries too are willing to shift their business alliance from dollar to euro. The recent decision has not abruptly; Tehran was already in process to shift its foreign-held assets out of dollar since 2003. Analysts are arguing that the euro move will definitely come into force as soon as possible but there are chances that Iran, world’s fourth largest oil producer, will still accept oil payments in dollars. However, Tehran had made it explicit that they are now not relying on dollar anymore. On the other hand, most international banks have already stopped dollar transaction with Iran while some have ceased trading with Tehran anticipating sanctions against it. Certainly, for the time being this seems that dollar is not affected even slightly but if other countries happen to follow suit, this will definitely have serious implication on the U.S. economy.