The US dollar remains to be irreplaceable and important in the world economy and financial system. The global spillover effect of the Fed's monetary policy is significant. Also, due to the existence of the petrodollar system, the US dollar policy has spillover effects on the international crude oil market. Due to the impact of corona virus COVID-19 pandemic together with superimposed geopolitical risks, the US Federal Reserve (Fed) finally increased the interest rate in March 2022, starting a new cycle of monetary tightening. By analyzing the mechanism and effect of the Fed's spillover effect on the international crude oil market, it is found that the Fed's tightening of monetary policy will increase the risk of recession in the US and even global economy; and suppress crude oil demand, worsen the fiscal situation of oil-producing countries, up-leveling their debt cost, aggravating capital outflows and financial turmoil. This paper proposes that oil companies pay more attention to fluctuation of oil prices and overseas financing costs, and actively explore an increase in RMB settlement of oil and gas trade to enhance security of overseas investment.