"Petrol, diesel and food prices are skyrocketing... the world is watching to see if BRICS will do something or if they will just be busy with meetings and tea? Under India's leadership, this is an opportunity to show real power!"
👉Nowadays, Hormuz is the most dangerous issue for the world of economies. Tensions among Iran, the U.S.A, and Israel regarding the transportation of commercial ships on the Hormuz Strait have totally restricted it. As we know, approximately 20% of crude oil supply passes through this Strait. It directly impacts the Asian and European economies.
👉 What is the Harmuz crisis?
👉 The Harmuz Strait is the closest sea route which connects with Pharaoh and Oman. Approximately one-fifth of the world's LNG supply passes through this route. Tensions between Iran and the USA close this sea route.
Actually, Iran demands toll tax from commercial ships, but the USA says that it will not impose any toll tax on commercial ships.
Result 👉 The Harmuz Strait is fully closed for commercial ships.
⁉️ Can BRICS play any role to resolve this issue?
Let's see how BRICS can resolve this issue?
👉 BRICS is an organization of Brazil, Russia, India, China, and South Africa. New members include Iran, UAE, and Saudi Arabia. Not only is it a financial platform, but it is also a symbol of a multipolar world.
For some following reasons, BRICS can play an important role 👇
The differentiating and effective members:
Iran and Saudi Arabia are members of BRICS, and they want stability in the Gulf area. Iran is close to Russia and China. India has a neutral stance on this issue, and the chair of this organization has continued the coordination and flow of energy to the member countries.
Capacity for mediation:
As we know, BRICS is not a military alliance, but it could solve this issue through diplomacy and financial assistance. Iran has also appealed to BRICS to play its role for regional stability. Although Pakistan is mediating, BRICS can play a significant and effective role in solving this issue.
Optional strategies:
Some optional strategies also play a very important role in resolving this issue. We know that BRICS countries are working on the North-South Transport Corridor (INTC), the Middle Corridor, and are also exploring some options.
This route can be developed to minimize dependency on the Harmuz Strait. Here, Russia has proposed to BRICS the establishment of a major storage facility for fertilizer to alleviate the fertilizer crisis.
Free from dollar dependency:
This crisis is challenging the petrodollar. BRICS countries can conduct their business in local currencies, which would reduce their dependency on the dollar.
Here some challenges also exist in front of BRICS let's see👇
👉 The biggest problem for BRICS is their flexible structure. It always focuses on consensus.
👉 Some countries like India have different types of their own benefits. (India ➡️ Israel and America)
👉 BRICS always believe in silence or given statement. If this stage has not proven the effectiveness of the global crisis, then questions will arise on this organization's credibility.
📊 POLL :
What do you think about it? Can BRICS solve this Harmuz Strait issue?
(A) Yes
(B) No
#USMilitaryToBlockadeStraitOfHormuz #binnace #GoldmanSachsFilesforBitcoinIncomeETF #JustinSunVsWLFI #CryptoMarketRebounds
