Iran’s formal inclusion into BRICS+ in 2023 has profound strategic implications for the bloc. By joining BRICS, Iran significantly strengthens the group’s geopolitical, economic, and resource-based power. Iran’s geographic location, vast natural resources, and unique position in the Middle East augment the group’s collective influence in global affairs, energy markets, and trade routes. This case study delves into the strategic value Iran brings to BRICS+.
Energy Dominance: Bolstering Global Energy Markets
Iran holds the world’s fourth-largest oil reserves and the second-largest natural gas reserves. As of 2023, Iran’s proven oil reserves stand at 157 billion barrels, while its natural gas reserves exceed 1,200 trillion cubic feet. These figures position Iran as a critical energy supplier, enhancing BRICS’ leverage in global energy markets.
China and India, two of the largest economies in BRICS, are heavily reliant on energy imports. Iran’s inclusion reduces BRICS’ dependency on Western-controlled energy sources and provides the bloc with a more secure, diversified energy supply. In 2023, China imported over $30 billion worth of oil from Iran despite sanctions. Iran’s re-entry into global energy markets through BRICS+ could also see India resume its import of discounted Iranian oil.
Geopolitical Importance: Bridging East and West
Iran’s geographical position, bordering the Persian Gulf and the Strait of Hormuz, gives it control over one of the most vital chokepoints in global oil trade. Approximately 20% of the world’s traded oil passes through the Strait of Hormuz, making Iran’s control over this passage critical to international energy markets.
Iran serves as a key transit country for China’s Belt and Road Initiative, which seeks to enhance trade and infrastructure links across Asia, Africa, and Europe. As part of BRICS+, Iran’s strategic location enables greater integration of transportation and energy corridors, particularly linking BRICS+ nations with Central Asia, the Middle East, and Europe. This enhances BRICS’ influence over global trade routes, strengthening the group’s global economic footprint.
Economic Diversification and Trade Opportunities
By including Iran, BRICS+ gains access to an economy with significant growth potential, particularly in non-oil sectors such as agriculture, manufacturing, and mining. Iran’s economy, valued at over $500 billion in 2023, has been hampered by sanctions, but its strategic partnerships with BRICS nations open new avenues for economic cooperation and investment, particularly from China, Russia, and India.
Iran has traditionally been sidelined in global trade due to US and European sanctions. However, through its inclusion in BRICS, Iran can now expand trade with BRICS nations, reducing its economic isolation. In 2023, Iran’s total trade volume with BRICS countries was estimated to surpass $50 billion. This integration into BRICS+ offers Iran alternative trade partners and reduces reliance on Western-dominated financial systems.
Military and Defense Cooperation
Iran’s inclusion in BRICS+ strengthens military cooperation within the bloc, particularly with Russia and China. Iran’s growing military ties with Russia, demonstrated by cooperation in Syria, arms supply with theRussia-Ukraine war and weapons development, enhance BRICS’ collective military capabilities. Additionally, Iran’s technological advancements, such as in missile technology and drones, offer potential for joint defence projects within the bloc.
Iran’s military presence and political influence in the Middle East, particularly through alliances with countries like Syria and Iraq, give BRICS a foothold in one of the world’s most geopolitically sensitive regions. This further enables BRICS to challenge Western military dominance in the region and participate in shaping regional security dynamics.
Middle Eastern Stability and BRICS Expansion
Iran’s inclusion in BRICS+ shifts the balance of power in the Middle East. Alongside fellow BRICS+ members Saudi Arabia and the UAE, Iran plays a central role in shaping the region’s future. As BRICS expands into the Middle East, it now has representation from key regional powers, allowing it to influence regional conflicts, energy politics, and economic integration efforts, such as the proposed Middle East Free Trade Area.
For BRICS+, Iran’s membership signals a shift toward a more multipolar world order, one less dependent on Western powers and more aligned with emerging markets. Iran’s entry into BRICS+ allows the bloc to engage more effectively with the Global South, particularly in regions historically dominated by US and European influence.
Iran’s regional influence extends beyond energy. Its alliances with countries like Syria, Iraq, and Lebanon, along with its strategic position on the Strait of Hormuz, give BRICS+ a foothold in Middle Eastern affairs. Iran’s inclusion allows BRICS+ to participate more directly in regional peace initiatives, energy cooperation, and security frameworks, especially in countering Western and NATO influence in the region.
Iran’s inclusion into BRICS+ enhances the bloc’s collective power in global energy markets, trade, and geopolitics. Alongside Saudi Arabia and the UAE, Iran’s strategic value extends beyond its resource wealth, offering BRICS+ significant geopolitical leverage in the Middle East and on the global stage. The presence of these key Middle Eastern nations in BRICS+ strengthens the group’s ability to influence international trade, energy security, and regional stability, thereby shaping a new era of global governance and multipolarity.
