BRICS member Iran’s economy has been heavily sanctioned and isolated since 2010 under President Barack Obama’s administration. The Islamic Republic has been operating under severe economic distress for close to 16 years now. It has nothing to lose and can manage to take another economic hit, but that’s not the case for the US.
In contrast, the US economy relies on global stability, smooth supply chains, and steady oil prices. A massive regional war disrupts the US much more on a global scale than it disrupts an already isolated Iran. The BRICS member can suffer a setback as Iran has endured financial damage for several years.
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Iran & BRICS Can Survive the War, the US Will Find It To Be Expensive
BRICS members are receiving a pass from Iran to procure oil from the Strait of Hormuz. The US and other Western countries have been squeezed of supply, which is leading to a rise in gasoline prices. The US cannot operate without a smooth supply of global trade, and oil disruptions can tank its stock market and economy.
While the stock market is mostly for the well-to-do crowd, it eventually rises after a few years. A recession will hit the average American the most and deplete their savings. BRICS member Iran feels it has already survived most of the Western isolation and can withstand economic shocks from the West. The global economy is also on the brink of a recession, with odds reaching 40%.
The triangular US, Israel, and Iran war has entered its fourth week with mixed signals of aggression and de-escalation. While Trump has announced a five-day ceasefire, Iran is seen repeatedly threatening the President. BRICS members are walking on a tight rope during the conflict as they need to support Iran, but also maintain a balance, siding with the US.