Divisions have emerged within the expanded BRICS group over the ongoing US-Israeli strikes on Iran and Tehran's retaliations, as covered in earlier coverage of the conflict's outset. While Brazil, China, and Russia condemned the initial attacks, India, Saudi Arabia, and the UAE criticized Iran's responses. The escalation has triggered market volatility, reducing capital flows to emerging markets.
The conflict, which began with US and Israeli airstrikes on February 28, 2026, killing Supreme Leader Ayatollah Ali Khamenei (as detailed in prior reporting), has exposed fractures in the BRICS bloc, expanded in 2023 to include Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Indonesia, and Iran as members or partners.
Brazil's Itamaraty initially condemned the strikes and urged diplomacy but later rejected Iran's missile retaliations against Gulf states, expressing solidarity with those nations. Ambassador Celso Amorim remarked: 'No one is judge of the world. Killing a leader of a country in office is condemnable and unacceptable.' Russia and China issued strong denunciations: Vladimir Putin labeled it a 'cynical violation of all norms of human morality and international law,' while Chinese spokesperson Mao Ning called it a 'grave violation of sovereignty.' India urged restraint, with Prime Minister Narendra Modi condemning attacks on Saudi Arabia. Saudi Arabia and the UAE summoned Iranian ambassadors, decrying Tehran's aggressions.
Analysts point to BRICS expansion as the source of these geopolitical tensions. Ana Elisa Saggioro Garcia from PUC-Rio observed that it introduced contradictions, impeding unified action. Josemar Franco from BMJ Consultores noted that the group's diversity preserves an economic orientation while curbing political overreach.
The war's fallout has squeezed emerging markets. Brazil's stock exchange dropped over 3% on March 3, mirroring declines in Mexico, Chile, India, and China. The MSCI Emerging Markets index fell 4%, fueled by a 'flight-to-safety' rally in the dollar (up 1.87% to R$ 5.261). Brent crude surged more than 11% after Iran closed the Strait of Hormuz, which handles 20% of global oil production. João Ferreira from One Investimentos called the initial attacks 'totally unexpected.' China, Iran's top oil buyer via a 25-year 2021 deal, prioritized stability; Foreign Minister Wang Yi deemed Khamenei's death 'unacceptable.' As of March 4—the conflict's fifth day—no unified BRICS stance has materialized.
