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This begs the question: why use the US Dollar?
Because Nixon and Kissinger made a deal with the Saudis to conduct all their oil transactions in dollars in exchange for military protection.
The dollar was probably the most desirable currency for international transactions before that though. The USA was the largest economy by far, and USD was convertible to gold at a fixed rate.
Other than the GBP and the Yen, it's one of the most financialized currencies that is often used as "the intermediary" for conversions into other currencies and for international transactions. You'll always have someone who will be willing to take your USD off you in exchange for product or another currency.
There are probably other alternatives (like the Euro and GBP) that could be used by these nations, but I'd imagine the USD has the least restrictions and the widest reach compared to each.
(This is also why the Yuan can't replace the dollar, China places a lot of measures to restrict outflow of their currency to prevent capital flight)
I'm curious why China isn't tempted to get the Yuan to become the reserve currency of choice. Why would that cause capital flight?
It's infamously hard to invest in non-state-controlled assets in China - that's one of the reasons why their domestic real estate industry became used as a financial asset more than housing; it was somewhat independent from government control.
In contrast, the USD largely has no regulations on how much capital enters or leaves the country, and private assets in places such as the New York Stock Exchange aren't going to be seized by federal authorities on a whim.
The mega wealthy of China already have to jump through many hoops to move their fortunes outside of the nation to places where they can properly invest without CCP oversight, so if one day their currency did become financialized similar to the USD and was allow to flow without restrictions, the outflow would be immense and likely very damaging to their domestic economy.
Everyone uses it for oil deals because it's the hardest currency.
It's the hardest currency because everyone uses it for oil deals.
(Countries that don't, get regime changed by the US military)
e.g.
https://www.theguardian.com/business/2003/feb/16/iraq.theeuro