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YUM needs to be run as "root" and the ORACLE_HOME and LD_LIBRARY_PATH you described belong to the "oracle" account.
Are you perhaps running oracle as root (wrong), or installing software using the oracle account (wrong)? The accounts should have their own environment.
You can install additional versions of python and link whatever version to your process or oracle account, but you should not change the default version of the system, which as you saw, will break things.