BRICS, the alliance of major energy-hungry nations, has invited five top oil producers to join their bloc. This move is seen as an important step towards weakening the petro-dollar and challenging Western dominance. However, the US dollar has continued to strengthen despite expectations of a decline. All eyes are now on Federal Reserve Chair Jerome Powell's speech at the Jackson Hole meeting, as any hint of a higher neutral rate could have a significant impact on bond markets.

The addition of Saudi Arabia, Iran, UAE, Egypt, and Argentina to the BRICS alliance could potentially reshape the energy landscape and have geopolitical implications. However, there are still significant barriers to overcome before BRICS becomes a united force.

The market response to this development has been mixed. While some expected the US dollar to weaken, it has instead extended its gains to the highest levels since the beginning of summer. This is despite two members of the Federal Reserve hinting that the end of tightening measures is near.

Overall, the invitation of these five oil producers to join BRICS presents both opportunities and challenges. It remains to be seen how this move will impact the global energy market and shake up the existing power dynamics.