The summit arrives as the six-month-old war in the Middle East forces emerging economies to rethink critical supply chains, trade routes, and energy procurement.
US Sanctions Campaign Targets Brics Ties with Iran
The Washington-led initiative, designated Operation Economic Outcast, aims to isolate Tehran from international financial systems. According to US Treasury Secretary Scott Bessent, the policy targets foreign banks and pressures global trading partners to sever economic ties with Iran or risk losing access to dollar-based financial networks. This hardline approach places several Brics members in a precarious diplomatic position.
China remains Iran’s primary economic lifeline, purchasing more than 80 percent of its shipped crude. However, tightening enforcement has severely restricted those flows. Commodity analytics firm Kpler reported that Iranian crude loadings plummeted to about 260,000 barrels per day in August, a steep drop from roughly 1.7 million barrels per day a year earlier. Only a fraction of that volume now moves off terminals via lorry, train, or smaller boats crossing the Caspian Sea, according to Kpler data.
Did you know? Brics members currently account for approximately 49.5 percent of the world’s population and roughly 40 percent of global gross domestic product at purchasing power parity, according to official group figures.
India’s Balancing Act Between Washington and Tehran
India hosts the high-stakes summit while navigating its own complex diplomatic relationships. New Delhi remains an essential US partner in the Indo-Pacific region but maintains independent commercial and strategic interests in Iran that Prime Minister Narendra Modi’s government is unlikely to abandon entirely. Just a week after Washington launched its latest sanctions push, Modi met with Iranian President Masoud Pezeshkian on the sidelines of the Shanghai Co-operation Organisation summit in Kyrgyzstan.
At the same time, India has adjusted its energy imports in response to shifting geopolitical pressures. According to Kpler figures, Russian crude accounted for more than 50 percent of India’s imports in June and July, settling at roughly 45 percent in August. Tarek Fadlallah, chief executive of Nomura Asset Management Middle East, noted that India will likely push for greater intra-Brics trade in national currencies during the New Delhi meetings, though host officials remain cautious about any moves that Washington might interpret as direct de-dollarisation.
China Weighs Competing Economic Priorities
Beijing’s dual role within the global financial architecture highlights the growing complexity of trade networks. While China represents Iran’s primary paying customer, its economic exposure to the West and the Gulf states far outweighs its trade with Tehran. Li-Chen Sim, an associate fellow at the US Middle East Institute, pointed out the distinct asymmetry in these relationships.
“For Iran, China is its biggest and basically its only paying buyer. But for China, it’s different. Iran is not its only oil supplier. It has got about 50 other suppliers,” Ms Sim told analysts. She added that China’s extensive trade volume with the Gulf states and the United States makes avoiding secondary sanctions a clear priority over confronting Washington directly on behalf of Tehran.
The unfolding diplomatic alignment suggests the international system is fracturing into a more flexible, multi-centered order rather than hardening into rigid opposing blocs. Arab members of Brics, alongside India, are leveraging the group to secure greater strategic autonomy without aligning against Western interests or becoming overly dependent on Beijing.
Frequently Asked Questions
What are the primary goals of the Brics summit in New Delhi?
Leaders are focusing on intra-Brics trade using national currencies, alternative payment systems, supply chain resilience, and navigating increased economic pressures from Western sanctions.
How has the conflict in the Middle East impacted global oil flows?
The Strait of Hormuz, a critical waterway handling a fifth of global oil and gas shipments, has experienced major disruptions due to regional military actions, sending international energy prices higher and forcing countries to diversify suppliers.
Which countries are currently members of Brics?
Originally comprising Brazil, Russia, India, China, and South Africa, the group expanded to include the UAE, Saudi Arabia, Egypt, Iran, Indonesia, and Ethiopia.
Join the Conversation: How will emerging economies balance competing financial pressures from the US and regional partners? Share your thoughts in the comments below, explore our latest economic analysis articles, or subscribe to our weekly newsletter for ongoing updates.