As far as I know there is no formal petrodollar recycling pact between the United States and Saudi Arabia, nor any termination of the underlying understanding, which is that most of the dollars flowing into the oil states in the Gulf get reinvested back into US and British (and European) economies, and into the IMF and similar entities, in the names of the oil states.
There are a lot of diplomatic cables from the 1970s about the origins of the concept (petrodollar recycling), but fundamentally it was that the Gulf Arab states had few options about where to put their oil money, and so most of it went back to western banks and international loan programs or into expensive property investments and financing Uber by at least $3.5B and so on. In exchange, they get their security guaranteed by US military and economic power. See [1] for a fascinating and well-written history of the period when the deal was implemented.
However, it does seem Iran under the Shah was the first big petrodollar recycler, and he'd already invested a billion dollars each in Britain and France by 1974, which is part of why the Iranian revolution came as such a shock in Washington (and also accounting for the U.S. and Britain and France and Germany pouring material support and loans into Saddam's regime in Iraq as he went to war to seize Iranian oilfields in the early 1980s).
Regardless there's no formal pact I've ever heard of on this, it's more some kind of diplomatic agreement, possibly enforced by the threat of freezing assets for various reasons real or pretend. The problem now is, what if the Gulf states decide they want to put those reserves into big domestic infrastructure projects? what if a majority of contracts going to Chinese firms, who seem better at large-scale solar PV and high-speed trains than the US or Europe does? Will Uber rates have to go up?
[1] "The Oil Kings: How the U.S., Iran, and Saudi Arabia Changed the Balance of Power in the Middle East" by Andrew Scott Cooper.
There are a lot of diplomatic cables from the 1970s about the origins of the concept (petrodollar recycling), but fundamentally it was that the Gulf Arab states had few options about where to put their oil money, and so most of it went back to western banks and international loan programs or into expensive property investments and financing Uber by at least $3.5B and so on. In exchange, they get their security guaranteed by US military and economic power. See [1] for a fascinating and well-written history of the period when the deal was implemented.
However, it does seem Iran under the Shah was the first big petrodollar recycler, and he'd already invested a billion dollars each in Britain and France by 1974, which is part of why the Iranian revolution came as such a shock in Washington (and also accounting for the U.S. and Britain and France and Germany pouring material support and loans into Saddam's regime in Iraq as he went to war to seize Iranian oilfields in the early 1980s).
Regardless there's no formal pact I've ever heard of on this, it's more some kind of diplomatic agreement, possibly enforced by the threat of freezing assets for various reasons real or pretend. The problem now is, what if the Gulf states decide they want to put those reserves into big domestic infrastructure projects? what if a majority of contracts going to Chinese firms, who seem better at large-scale solar PV and high-speed trains than the US or Europe does? Will Uber rates have to go up?
[1] "The Oil Kings: How the U.S., Iran, and Saudi Arabia Changed the Balance of Power in the Middle East" by Andrew Scott Cooper.