The recent decision by Iran to grant South African vessels safe passage through the Strait of Hormuz is more than a bilateral favour. It is a vivid example of how BRICS energy dynamics are shifting the global chessboard. While the US signals an exit from its latest Middle East conflict, the bloc – Brazil, Russia, India, China and South Africa – is quietly building parallel supply chains, payment mechanisms and diplomatic shields that protect member states from Western sanctions and oil-market shocks. In 2026, BRICS energy policy is no longer aspirational. It is operational.
When Iran announced this week that South African vessels could safely navigate the Strait of Hormuz, it was not just a diplomatic courtesy. It was a statement of BRICS energy solidarity in action. While the United States signals it is winding down its direct involvement in the Iran conflict, the bloc is demonstrating that it can protect its members’ critical supply lines even when Western powers cannot – or will not.
This is the new reality of BRICS energy dynamics in 2026. Once dismissed as a loose grouping of emerging economies, the bloc now controls a commanding share of global oil production and consumption. Russia remains a top exporter despite sanctions. China and India together drive more than 30 percent of world oil demand. Brazil is expanding offshore output, and South Africa sits at the strategic southern gateway for rerouted shipments. Together they are rewriting the rules of energy trade.
The Hormuz Test and BRICS Solidarity
The Hormuz crisis has been the clearest test yet. When the strait was effectively closed in late February, global shipping costs soared and South African fuel prices spiked. Pretoria’s swift diplomatic engagement with Tehran – rooted in long-standing BRICS and non-aligned ties – produced a tangible result: safe passage for South African tankers while others were forced to take the long route around the Cape. Energy Minister Gwede Mantashe called it “a practical expression of BRICS energy cooperation.”
The move highlights how BRICS countries are increasingly using bilateral and bloc-level diplomacy to insulate themselves from Western-led disruptions. Russia has done the same by rerouting oil to China and India via shadow fleets and local-currency deals. The pattern is clear: when one member faces pressure, others step in with alternative routes, payments and political cover.
De-Dollarisation Gains Momentum – The Details Behind the Shift
At the core of BRICS energy cooperation is a deliberate and accelerating push to reduce reliance on the US dollar. In 2025, more than 60 percent of bilateral trade between Russia and China was already settled in rubles and yuan, according to official data from both central banks. By early 2026 that figure has climbed closer to 75 percent for energy contracts specifically. Russia now prices the majority of its Urals and ESPO crude exports to China and India in yuan or rupees, bypassing SWIFT entirely in many cases.
India has emerged as a major testing ground for this shift. New Delhi has expanded rupee-based oil purchases from Russia to more than 40 percent of its total imports from Moscow, with the remainder increasingly settled through UAE dirhams or Chinese yuan. South Africa has begun piloting rand-yuan settlements for selected commodity trades, including coal and refined products, through the South African Reserve Bank’s new cross-border payment pilots.
The bloc’s proposed BRICS payment system – now in advanced testing – is the most ambitious piece. It combines a blockchain-based platform with a basket of local currencies (the so-called “BRICS Bridge”) that allows instant settlement of energy trades without touching the dollar. Early trials in 2025 already handled several billion dollars’ worth of oil and gas contracts. Full rollout is expected by late 2026, with South Africa positioned as one of the first adopters for African transactions.
The practical impact is already visible. When Western sanctions hit Russian energy exports, the redirected barrels simply flowed into BRICS markets using non-dollar rails. This has lowered transaction costs, reduced exposure to US secondary sanctions, and given member states greater control over pricing. For South Africa, every percentage point of non-dollar oil trade reduces the rand’s vulnerability to sudden dollar spikes triggered by events in the Gulf or Washington.
Critics in the West dismiss this as symbolic, but the numbers tell a different story. BRICS nations now account for over 40 percent of global oil demand and a rising share of production. As that share grows, the ability to price and settle oil outside the petrodollar system becomes a genuine structural change – not just a political gesture.
Russia-China-India Axis: The Engine Room
The real muscle in BRICS energy comes from the Russia-China-India triangle. Russia has redirected the bulk of its Urals crude to Asia, often at discounted prices that Beijing and New Delhi happily accept. China, the world’s largest importer, has filled strategic reserves and expanded refinery capacity to process discounted Russian and Iranian barrels. India has become the fastest-growing buyer of Russian oil, turning the country into a refining hub that re-exports products to Europe and Africa.
This axis has effectively created a parallel energy market that operates with its own pricing signals and payment rails. When Western sanctions bite, the BRICS market absorbs the redirected volumes. The result is greater resilience for member states and a slow erosion of the West’s traditional dominance over oil pricing.
South Africa’s Strategic Position
Pretoria sits at a unique crossroads. As the only African founding member, South Africa is both an importer and a potential energy hub. The Hormuz deal is the latest proof that BRICS membership delivers tangible benefits. Ramaphosa’s Ministerial Task Team on fuel and food security was formed precisely to manage these dynamics. With the rand under pressure from oil volatility, every successful BRICS energy arrangement helps stabilise household budgets and business costs.
At the same time, South Africa is pushing its own energy transition. The Just Energy Transition Investment Plan, backed by BRICS partners, aims to blend coal phase-down with massive renewable and gas expansion. Chinese financing and Russian nuclear expertise are central to that plan. In BRICS energy talks, Pretoria consistently argues for a pragmatic mix of fossils, renewables and transitional fuels rather than a rushed Western-style decarbonisation.
Renewables and the Long Game
While oil and gas dominate headlines, BRICS is also positioning itself for the green future. China dominates global solar and battery supply chains. India is scaling green hydrogen. Brazil leads in biofuels. South Africa’s wind and solar potential, combined with its critical minerals, makes it a natural partner. The bloc’s New Development Bank has already financed dozens of renewable projects across member states.
Yet the transition is uneven. Coal still powers much of China and India’s baseload, and Russia remains a fossil-fuel giant. BRICS energy policy therefore balances immediate security needs with long-term decarbonisation – a pragmatic approach that contrasts with the more ideological Western climate agenda.
Risks and the Road Ahead
BRICS energy cooperation is not without friction. Competition between China and India for African resources, differing views on Russia’s role, and internal debates over climate targets can create tensions. External pressure from the US and EU – through sanctions, tariffs and technology restrictions – remains a constant challenge.
For South Africa the stakes are immediate. Fuel prices, inflation and the rand are directly linked to how well BRICS navigates the next phase of global energy realignment. The Hormuz deal is a short-term win. The bigger prize is a more resilient, diversified and de-dollarised energy architecture that reduces Pretoria’s vulnerability to distant conflicts.
A Bloc That Delivers
The 2026 BRICS energy story is one of growing confidence. From Hormuz to the yuan-ruble oil trade, the bloc is proving it can protect its members’ interests in a turbulent world. For South Africa this means more than cheaper tanker routes. It means a seat at a table where energy security is negotiated collectively rather than dictated from afar.
As Trump signals an American exit from the latest Middle East entanglement, BRICS is stepping into the space with practical solutions and alternative systems. The dynamics are still evolving, but one thing is clear: when it comes to energy, BRICS is no longer asking for a place at the table. It is building its own.