"Should Iran's oil bourse be successful and sales be denominated in Euros, this will induce hedging of the Euro versus the dollar and fundamentally alter the prices of oil. Some reports show that both China and Russia, large trading partners with Iran, have begun to increasing their holdings of Euros."

""Russia, Venezuela, and some members of OPEC have expressed interest in moving towards a petroeuro system," he said. And it isn't entirely implausible that China, which is "the world's second largest holder of U.S. currency reserves," might eventually follow suit."

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"Bush reiterated that he hoped to resolve the [nuclear] dispute diplomatically.

Bush's comments came as the United States, Britain, Russia, China, France, and Germany have been seeking agreement on a package of incentives and possible sanctions that could be presented to Iran in a bid to persuade Tehran to halt uranium enrichment."

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