India hosts the BRICS Leaders’ Summit this weekend in New Delhi, striving to elevate the bloc’s global stature while navigating deep divisions sparked by the U.S.-led war on Iran.
The ongoing conflict has severely disrupted the Strait of Hormuz, halting critical oil trade and driving global crude prices past $100 per barrel.
This energy shock threatens fragile macroeconomic recoveries across developing markets. It directly pressures central banks trying to tame inflation while managing mounting import bills and widening fiscal deficits.
The diplomatic tightrope is acute. Tehran and the United Arab Emirates sit as opposing members within an expanded coalition, testing multilateral solidarity and India’s chairmanship resolve.
New Delhi aims to advance local currency settlements and financial resilience mechanisms. However, security tensions risk eclipsing institutional reforms as leaders debate collective responses to mounting supply chain bottlenecks.
