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US-Israel-Iran conflict deepens Global South's economic and humanitarian crisis

From Brazil to BRICS, nations scramble for solutions as war-driven inflation and Western interventionism push them to the brink. Can collective action break the cycle?

The image shows a poster with text and a diagram depicting the U.S. trade deficit by country in...
The image shows a poster with text and a diagram depicting the U.S. trade deficit by country in billions of dollars. The diagram is composed of several circles of different colors, each representing a different country, and the text provides further information about the deficit.

US-Israel-Iran conflict deepens Global South's economic and humanitarian crisis

The US-Israel conflict with Iran is sending shockwaves through the Global South, where countries face worsening economic and humanitarian crises. Rising oil prices, food shortages, and disrupted supply chains are hitting these nations harder than wealthier states. Many now view the military actions as another example of US-led interventionism undermining their sovereignty.

Against this backdrop, nations like Brazil are reshaping their foreign policies to strengthen ties within the Global South. The push for greater self-sufficiency and collective economic resilience is growing as a way to counterbalance Western dominance in global affairs.

The war has triggered immediate economic fallout across the Global South. Oil prices have surged, raising fears of a broader energy crisis. Food and fertiliser supply chains, already fragile, now face further disruptions—threatening stability in regions dependent on imports.

For many of these countries, the conflict is more than an economic burden. Civilian casualties, infrastructure destruction, and geopolitical tensions are turning it into an existential threat. Critics argue that US-Israel military actions reinforce a pattern of interventionism that disregards the sovereignty of smaller nations. In response, some Global South governments are seeking joint strategies to mitigate the crisis. Brazil, for instance, is prioritising BRICS and South-South cooperation to diversify trade and investment. By deepening these partnerships, it aims to reduce reliance on Western-dominated systems while avoiding direct confrontation with major powers. Yet challenges remain. Despite efforts to build alternative trade routes or reduce dependence on the US dollar, concrete progress has been limited. The lack of documented impacts from BRICS expansion since 2023 highlights the slow pace of economic realignment. Still, the push for a more unified Global South persists, driven by the urgent need to amplify their collective voice on the world stage.

The conflict's ripple effects are exposing deep vulnerabilities in the Global South. Higher energy costs, food insecurity, and geopolitical instability are forcing nations to rethink their strategies. While Brazil and others advocate for stronger regional alliances, the path to economic independence remains uncertain.

For now, the war's toll continues to mount—leaving these countries to navigate a crisis that threatens both their economies and their sovereignty.

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