India’s Diplomatic Balancing Act Amid Iran-Israel Conflict Roils Markets
Global markets reeled as tensions between Iran and Israel escalated, with Asian indices bearing the brunt. Hong Kong’s Hang Seng, Japan’s Nikkei, India’s Sensex, and South Korea’s KOSPI plunged to yearly lows amid the geopolitical turmoil.
BRICS nations fractured in their response. While founding members Brazil, Russia, China, and South Africa backed Iran, India conspicuously withheld support. New Delhi’s silence speaks volumes—it condemned Iran’s earlier strike on UAE territory and maintained open channels with Israel. Prime Minister Modi’s visit to Abu Dhabi just before the conflict underscores India’s strategic realignment.
The crisis exposes fault lines in the BRICS alliance. India’s refusal to echo pro-Iran statements suggests a recalibration toward Western-aligned partners. Markets now watch whether this divergence will impact the bloc’s economic initiatives, particularly dollar-alternative payment systems long championed by BRICS.
