Iran‘s Strategic Shift: Expanding Ties with SCO and BRICS
Iran’s growing engagement with organizations such as the Shanghai Cooperation Association, BRICS, and the Eurasian economic Union reflects a gradual recalibration of its foreign policy.
This approach seeks to mitigate external pressure,expand economic horizons,and position Tehran as a relevant actor in a global order increasingly shaped outside the West.
In the summer of 2025, during the BRICS foreign ministers’ meeting in Brazil, Iran’s presence was more then ceremonial. It marked the first time Tehran participated as a full member following its official accession,signaling a clear intention to move beyond symbolic alignment and toward tangible cooperation. Iranian representatives emphasized priorities such as financial coordination, infrastructure investment, and South-South trade, themes that resonate with many BRICS members seeking alternatives to Western-dominated systems.
Simultaneously occurring, parallel diplomatic activity unfolded within the framework of the Shanghai Cooperation Organization. Meetings focusing on trade facilitation, customs coordination, and transit corridors underscored Iran’s effort to translate political membership into practical economic outcomes. These discussions remain relevant, with follow-up negotiations ongoing and their potential impact expected to materialize over the coming year.
Shanghai Cooperation Organization beyond security
Originally conceived as a security-focused body addressing extremism and regional stability, the Shanghai Cooperation Organization has undergone a notable transformation.Economic cooperation, connectivity, and energy collaboration now occupy a central place on its agenda.For Iran, this evolution presents strategic opportunities rooted in geography as much as diplomacy.
Situated at the intersection of Central Asia, the Caucasus, the Persian Gulf, and South Asia, Iran holds a natural advantage as a transit hub. Iranian officials have repeatedly highlighted the integration of the International North-South Transport Corridor with SCO-related infrastructure projects as a priority. Such integration could reduce transport costs, shorten delivery times, and strengthen Iran’s role in regional supply chains.
Trade data from recent years indicate a steady increase in Iran’s commercial exchanges with SCO members,particularly China,Russia,and Central Asian states. While challenges related to sanctions and financial transfers persist, the SCO framework has increasingly functioned as a platform for pragmatic cooperation, allowing members to explore non-traditional payment mechanisms and localized financial arrangements.
BRICS and the search for financial alternatives
BRICS represents one of the moast visible efforts by emerging economies to reshape global economic governance. Its expansion to include West Asian actors has enhanced its geopolitical relevance,and Iran’s accession fits within this broader pattern.For Tehran, BRICS membership is not merely about prestige; it is closely tied to long-standing ambitions to reduce vulnerability to Western financial leverage.
One focal point is the New Development Bank, which was created to finance infrastructure and development projects in member states. Iranian policymakers view access to this institution as a potential channel for funding large-scale projects in energy, transport, and industry. Though, turning this vision into reality requires overcoming technical barriers, aligning regulatory standards, and navigating political sensitivities among members.
Another area of interest is the gradual shift toward the use of local currencies in trade settlements. Several BRICS countries have already experimented with such mechanisms, and Iran has signaled its readiness to participate.While this approach does