One of the newest BRICS additions marked a milestone, as China and Iran set a major oil record. Indeed, Iran saw its oil exports reach their highest level in six years. Moreover, these exports were massively boosted by sales to its new BRICS ally, China.
This historic development has seen the country benefit from a huge annual economic boost of $35 billion, according to reports. Specifically, in the first three months of 2024, Iran produced an average of 1.56 million barrels per day. A predominant share of these exports went to China.
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China and Iran achieve oil export milestone
The BRICS economic alliance shook up the geopolitical landscape by announcing an invitation for expansion to six countries. Among them, five countries responded favorably, being the first countries introduced into the bloc since 2001. These countries included Saudi Arabia, Iran, Egypt, Ethiopia and the United Arab Emirates (UAE).
Today, this expansion is already proving its worth. Indeed, amid BRICS domination of the sector, China and Iran have set a major oil record. Specifically, the latter reached a six-year high in terms of oil exports, largely thanks to increased sales to China.
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The volume of exports reached its highest level since the third quarter of 2018 and reflects a clear benefit for the economic collective. Additionally, oil production and exports have increased significantly over the past year, amid ongoing sanctions issues facing the country.
With Saudi Arabia and the United Arab Emirates joining BRICS, its dominance of the oil sector was notable. This situation is set to continue, with local currency settlement only adding to the symbiotic benefits of ongoing bilateral trade.
These developments will continue to build strength in the Global South. Their presence and importance are expected to continue to grow and create greater division within the global economy. However, it should also give more credence to the multipolar ideologies shared by the BRICS collective.
