SCOTT SIMON, HOST:
A summit meeting is taking place in New Delhi that includes countries - Iran and several Gulf nations - who are now at war. It's a meeting of a group called BRICS, and it represents about half of the population of the world. We're joined now from New Delhi by NPR's international correspondent Diaa Hadid. Diaa, thanks very much for being with us.
DIAA HADID, BYLINE: Thank you, Scott.
SIMON: What's the summit about?
HADID: Well, BRICS is effectively a forum for emerging economies. It's aimed at countering long-standing Western dominance, and there's leaders from more than a dozen countries who've turned up. And, Scott, it's quite the gathering. China's president, Xi Jinping, and Russia's president, Vladimir Putin, are here. But for now, the attention is on those involved in the latest Mideast war, because the Iranian president is here, and Iran has been striking Gulf countries that are also at the summit - the United Arab Emirates, Bahrain and Saudi Arabia. And that's because Iran accuses them of backing the United States.
And just to set the scene a bit, the summit today comes just a day after Iranian-backed fighters in Yemen - they're known as the Houthis - appeared to consolidate control over another shipping route called Bab el-Mandeb. That route was emerging as an alternative for some Gulf oil exports through the Strait of Hormuz. You might recall that strait has been largely blocked since the Mideast war began in February.
SIMON: Dramatic ingredients for a meeting. How has it played out so far?
HADID: So far, the Iranian president, Masoud Pezeshkian, has told audiences here that Iran and Oman have agreed on a joint route through the Strait of Hormuz, and they'll sign a deal on Monday. Now, we're seeking confirmation from Gulf states and also a response from President Trump because he's previously threatened to bomb Oman. It's the other country that overlooks the Strait of Hormuz - because President Trump is demanding the unconditional reopening of the strait. The Iranian president said something else that may well enrage the president as well.
SIMON: What did he say?
HADID: He's called on BRICS countries to build an alternative to the international payment system - basically, ditch the dollar. And this part was broadcast by the Indian outlet ANI.
(SOUNDBITE OF ARCHIVED RECORDING)
UNIDENTIFIED PERSON: (Non-English language spoken).
UNIDENTIFIED COMMENTATOR: Islamic Republic of Iran believes that economic resilience is not possible without diversifying trade partners, sources of financing and payment channels.
HADID: The key words there, Scott, are diversifying payment channels.
SIMON: And help us translate what that means.
HADID: It doesn't sound that exciting. But basically, the bulk of all global trade presently is done in dollars, and that allows United States to impose punishing sanctions, like on Russia and Iran. So these two countries, alongside other members of BRICS, have long called for the development of payment systems that bypass the dollar, and that would diminish American influence. During last year's BRICS summit, President Trump threatened extra tariffs on countries that he said aligned with the anti-American policies of BRICS.
SIMON: Is it even a realistic proposition to replace the dollar in international transactions?
HADID: Experts say that's unlikely for now, if only because of conflicts between BRICS nations themselves, like United Arab Emirates, for instance, which recently halted all trade with Iran. But these nations do represent about a third of all global trade. Christopher Walker, the vice president at the think tank the Center for European Policy Analysis, warns against complacency because he says America's biggest rival, China, is assuming a dominant role in BRICS.
CHRISTOPHER WALKER: They now see the grouping more as a geopolitical counterweight to the U.S. This is certainly one of the Chinese leadership's ambition - is to flex its muscles. We absolutely should be concerned.
HADID: And with China hosting the summit next year, we can expect more of these muscular assertions of independence from the United States.
SIMON: NPR's Diaa Hadid in New Delhi. Thanks so much.
HADID: You're welcome, Scott. Transcript provided by NPR, Copyright NPR.
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