New Delhi is all decked up to host the 18th BRICS Summit on September 12-13. The Summit comes at a time when the world is in global turmoil and dealing with two wars involving world’s most powerful countries, Russia with Ukraine and the United States with Iran, resulting in soaring oil and energy prices, hostile sea trade routes with their side effects impacting the global economy, and a rise in commodity prices in the domestic markets of affected nations.
Except for the United States, Europe, and Australia, almost all major countries across the world are in India, including Iran, which is involved in a deadly war with the US, to deliberate upon the global situation and discuss the road ahead.
BRICS is a 11-member grouping including Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa, and the United Arab Emirates (UAE). These member nations also include one of the world’s most oil and energy resource-rich nations, i.e. UAE, Saudi Arabia, and even Iran.
As of now, when they are in India and given that one by-product of the Iran war has been the disruption in the oil trade market, will the presence of chiefs of the Brent crude cartels in New Delhi result in any discounts for India?
Because all we know is that the Strait of Hormuz, the world’s most used strategic oil and energy trade route, has been disturbed forever and isn’t going to return to normal for a foreseeable future. Though nations who have traditionally remained dependent for oil on Gulf countries may have diversified their sources, for a country like India, having the largest population on the earth, would still, any day, prefer to engage in oil and energy trade with the Gulf – the reasons are cost and logistics.
Therefore, given that the presence of heads of state of the UAE and Saudi being in New Delhi for BRICS and for that matter also Iran – engaged in war with the US – it remains to be seen whether India and for all that we hope and expect – be able to use this diplomatic rush for its advantage and succeed in availing some discounts viz-a-viz oil is concerned.
It could be some price relaxations, logistics support, security guarantees including from Iran since Hormuz remains risky as far as the war is on.
The UAE Delegation comprising of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, representing the UAE President is expected to land in New Delhi on September 11 (today) around 5:30 pm while Saudi Arabia Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs is expected to land in New Delhi on Saturday (September 12), around 9 pm.
