US watches Brics as members juggle ties with competing powers
Leaders of the Brics group will gather in New Delhi this week during a time of uncertainty in the global economy, with the Iran war disrupting energy markets , trade routes and long-standing relationships. Six months of war in the Middle East has forced countries to rethink where they get their energy, how they move goods and how they do business. The summit on September 12 and 13 comes as US…
The Brics group, consisting of Brazil, Russia, India, China, and South Africa, is meeting in New Delhi this week amid global economic uncertainty. The Iran war has disrupted energy markets, trade routes, and longstanding relationships, forcing countries to reconsider their energy sources, logistics, and business practices. The US administration, under President Donald Trump, has intensified efforts to isolate Iran, warning trading partners of secondary sanctions if they maintain financial ties with Tehran.
The conflict has also affected the flow of oil and gas through the Strait of Hormuz, causing oil prices to rise. Operation Economic Outcast, the new US front, aims to target banks and urges other nations to sever economic ties with Iran to avoid losing access to the dollar-based financial system. This places certain Brics members, such as China and India, in a challenging position.
China is Iran's largest oil customer, while India is a crucial US partner in the Indo-Pacific region yet also has commercial and strategic interests in Iran. The upcoming summit on September 12 and 13 is expected to focus on increasing intra-Brics trade in national currencies but may face low hopes due to the failure of a joint declaration at a previous foreign ministers' meeting.
China, Iran's primary oil supplier, is unlikely to confront the US directly over Iran, preferring instead to push for de-escalation and protect its broader economic interests. The Brics group, which has expanded to include the UAE, Saudi Arabia, Egypt, Iran, Indonesia, and Ethiopia, accounts for 49.5% of the world's population and about 40% of global GDP at purchasing power parity.
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