Representatives from the Brics nations are set to convene in New Delhi this week, gathering against a backdrop of significant global economic instability. This period of uncertainty is largely influenced by the ongoing conflict in Iran, which has been active for six months in the Middle East. The hostilities have severely impacted international energy markets, disrupted established trade pathways, and altered long-standing diplomatic and commercial relationships. Nations are now compelled to re-evaluate their energy procurement strategies, logistical methods for transporting goods, and overall business operations. Concurrently, the administration of US President Donald Trump is intensifying its economic efforts to isolate Iran, cautioning trading partners about potential secondary sanctions if they maintain financial connections with Tehran. Furthermore, the conflict has impeded the transit of oil and natural gas through the vital Strait of Hormuz, a strategic waterway typically handling a fifth of global shipments. This disruption has caused global oil prices to rise since the strait's effective closure in February.
Source : The National
Photo : The National
