Iran War Tests BRICS — And Reveals Its Limits

Why It Matters

BRICS' inability to present a united front on the Iran war reveals structural weaknesses that could reshape global governance and market stability, especially for energy‑dependent economies.

Key Takeaways

• Iran war doubles fuel prices in the Philippines, straining households
• BRICS remained silent, exposing its fragmented decision‑making
• India secured safe passage for its ships through the Strait of Hormuz
• China and Russia vetoed a UN resolution on force in Hormuz
• Loose, leader‑driven format limits BRICS' collective action potential

Pulse Analysis

The Iran‑Israel conflict has quickly morphed from a regional flashpoint into a global economic shock. With the Strait of Hormuz—a conduit for roughly 20% of the world’s oil—partially blocked, fuel prices have surged, exemplified by a more‑than‑double increase in the Philippines and rising LPG costs across South Asia. The ripple effect is felt in higher food prices in Gulf states and heightened recession fears in the United States, underscoring how a single geopolitical flashpoint can destabilize worldwide supply chains.

Against this backdrop, the BRICS bloc’s muted response has drawn sharp criticism. While the group’s charter emphasizes multilateral cooperation among emerging powers, its leader‑driven, informal structure has prevented a coordinated diplomatic effort. India, as the current chair, negotiated safe passage for its merchant fleet, and China and Russia exercised their UN Security Council vetoes to block a resolution that would have authorized force in Hormuz. These isolated wins illustrate how member states can pursue national interests even as the collective voice remains silent, reinforcing perceptions of BRICS as a loose coalition rather than a decisive global institution.

Looking ahead, the upcoming BRICS summit in India will test whether the bloc can pivot from crisis management to broader economic agenda‑setting. Analysts argue that without institutional reforms—such as clearer decision‑making protocols or a dedicated security mechanism—BRICS will continue to lag behind more structured entities like the UN or regional unions. The war’s aftermath may therefore accelerate calls for new South‑South frameworks that can deliver coordinated action, a development that could reshape trade, investment, and geopolitical alignments in the coming years.