The war with the US and Israel is turning expensive for BRICS members Iran and China, as trade turnover between the two countries has fallen by 56.7%.According to the recent data from the General Administration of Customs of China, Chinese imports of Iranian products decreased during the Q2 reporting period worth $415.5 million.
Trade turnover between BRICS members China and Iran amounted to $1.55 in Q1 of 2026. That’s a sharp dip in April, proving that the conflict has caused immense losses to member nations. While Iran has nothing much to lose, as its economy has been sanctioned, China could be deemed the biggest monetary loser out of the ordeal.
China had pushed the Chinese yuan for settlements with BRICS member Iran due to sanctions. Now, with the fall in trade turnover, the usage of the Chinese yuan is seeing a gradual decrease. The Xi Jinping administration’s aim of internationalizing the yuan is being stunted due to the conflict in the Middle East.
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Not just with China, imports and exports with Iran from other BRICS countries have fallen drastically. This makes the Islamic Republic further vulnerable to financial losses above the mounting pressures of the US sanctions. While Iran successfully blocked the Strait of Hormuz for nearly five weeks, it had to swallow most of the losses.
The upcoming BRICS summit in India’s New Delhi will see a different topic of discussion by China, Russia, and Iran. Most likely, they could pitch again for de-dollarization, which other members are not keen on. The three members are desperate to push their local currencies ahead for trade and transactions. However, the financial order must align naturally for a change, and a forced monetary system will not go too far.
Source: Watcher Guru
