Iranian President Masoud Pezeshkian, during his telephone conversation with Prime Minister Narendra Modi earlier today, emphasised the need for active and constructive role of BRICS to safeguard peace, stability and security in the region.
Pezeshkian said that despite the US and Israel targeting Iran’s vital infrastructures, Iran is ‘’committed to expanding cooperation and interaction with India and friendly countries within the framework of international organizations including BRICS and Shanghai Cooperation Organization (SCO).’’
This is probably the first time that BRICS has been mentioned in the current Iran-US-Israel war, which is in its second week now, indicating Iran’s expectations that the 11-member grouping, of which Iran is also an active member, would come in its support.
It cannot be denied that the escalating conflict poses a severe threat to BRICS. The conflict has exposed deep fault lines within the BRICS block. BRICS founding members Brazil, Russia, China and South Africa have openly condemned US-Israeli strikes on Iran as violations of international law. India, as the 2026 BRICS Chair, has not openly condemned the attacks but has called for “dialogue and diplomacy’’ to restore peace.
Prime Minister Modi, during his telephone conversation with President Pezeshkian reiterated India’s commitment to peace and stability and urged for dialogue and diplomacy. He expressed deep concern over the escalating tensions and loss of civilian lives as well as damage to civilian infrastructure.
The Prime Minister emphasised that India will make its utmost effort to play a constructive role in the path of diplomacy.
Iran’s strikes on the UAE and Saudi Arabia have pitted BRICS members against one another, making a Joint Statement on the war nearly impossible.
While the crisis highlights the group’s internal rifts, it has accelerated plans for alternative financial systems and intensified push for financial independence from Western systems.
Development of the BRICS Pay platform is gaining attention as a resilient alternative to SWIFT network. Russia and Iran have already shifted 90 per cent of bilateral trade to their national currencies. Some other members are strengthening local-currency settlements to protect their energy imports from Dollar volatility.
The US has already threatened 100 per cent tariffs against any BRICS nation that backs BRICS currency intended to replace the dollar. With Iran and the UAE as members, BRICS now controls over 40 per cent of global crude oil. This gives the bloc significant leverage to shift global energy pricing away from ‘Petro-Dollar’ in the long run.
Iran’s attacks on US bases in Gulf countries should be seen in that context. Iran’s new Supreme Leader, Mojtaba Khamenei, said the attacks will continue until US bases in the region are closed. The US bases in Gulf countries serve as US’s proxy power in the Middle East.
By striking nations like Qatar, Bahrain, Kuwait, and the UAE, thereby broadening the battlefield, Iran wants to convey that the ‘Petro-Dollar’ understanding between Gulf countries and the US is no longer valid because US is not able to provide them security.
(The Petro-Dollar system began during President Richard Nixon’s administration as a strategic response to the collapse of gold-backed monetary system and the 1973 oil crisis. Nixon ended the direct convertibility of the US Dollar to gold, effectively ending the Bretton Woods system. This left the Dollar without a commodity anchor, causing its value to decline. To maintain global demand for the Dollar, the US sought to peg it to the world’s most essential commodity–Oil. Therefore, the term ‘Petro-Dollar.’ After the 1973 Arab oil embargo, US negotiated a landmark deal with Saudi Arabia on June 8, 1974, under which Saudi Arabia agreed to price and sell its oil exclusively in US dollars. The Saudis agreed to invest their vast surplus oil revenues back into the US economy, primarily by purchasing U.S. Treasury bonds. In exchange, the US provided Saudi Arabia with military protection, weapons, and technical support. As the largest oil exporter, Saudi Arabia’s decision forced other OPEC countries to follow suit, making the Dollar default currency for global energy trade. This system ensured a constant worldwide demand for Dollars, cementing its status as the world’s primary reserve currency even without gold backing.)
It is in this context that Iran has intensified attacks on US bases in Gulf countries, closed the Strait of Hormuz to ultimately force the Gulf Countries out of the Petro-Dollar understanding with the US. Pezeshkian’s mention of BRICS during telephone conversation with Prime Minister Modi should also be seen in that context.
The article is written by Ramesh Bhan and views expressed in this article are authors own and doesn’t necessarily reflect the editorial policy of The Legitimate
