Research & Commentary Results

When Iranian drones struck two Amazon Web Services data centers in the UAE on March 1, 2026, and damaged a third in Bahrain the same morning, many thought this could spell the end of the Gulf’s AI ambitions. Whatever the intent, the attacks highlighted the new reality that data centers have now become targets in inter-state wars.

When President Donald Trump ordered US forces into war against Iran, the administration’s ambitions reached well beyond Tehran’s nuclear program. Trump openly encouraged Iranians to topple their government. Israeli leaders spoke of reshaping the Middle East. The war’s architects got their wish — only not in the way they intended.

The conventional framing of China’s role in the Middle East in policy discourse centers on a familiar question: what challenge does Beijing pose to US primacy? The answer is often framed as a largely linear story in which expanding economic influence gradually translates into geopolitical leverage.  Yet this view captures only part of the reality.

Turkey has become a major player in Africa, with a particularly strong footprint in the Horn. While economic and energy interests’ matter, one sector now stands at the center of Ankara’s regional activism: defense.

Turkish ambitions to develop nuclear weapons are not new, but the changing security environment is strengthening Ankara’s motivations and rationale for moving away from its longstanding role as a champion of nonproliferation and toward a strategy of preserving the option to build nuclear weapons without actually pursuing them. The challenge for Washington is to manage the nuclear trajectory of regional powers such as Turkey and Saudi Arabia rather than preventing them from acquiring greater nuclear capabilities altogether.

Gulf Cooperation Council states are investing hundreds of billions in AI infrastructure, data centers, and semiconductor capabilities, making technology central to post-oil economic diversification. Yet this expansion faces a critical constraint: severe water scarcity turns AI growth into a challenge, as data centers in some of the world’s most water-stressed territories strain already overextended hydrological systems. The U.S.-Iran war has also underscored the physical vulnerability of the infrastructure supporting these ambitions. Together, these pressures raise pressing questions about the sustainability and scalability of Gulf states’ AI-driven development strategies.

President Donald Trump’s disdain for strategy extends to process: mass National Security Council firings and reliance on a tiny circle of advisors have left the interagency policy process dormant amid the Iran war. The result is improvised, damaging moves like the Strait of Hormuz toll scheme. Reviving a professional, deliberative policy process is essential.

The MENA Energy Recap is a quarterly review of key energy developments that took place in the region from April through June of 2026 and what they signal in the months ahead. The Recap views these developments through the lens of policy and strategy, energy security, and markets.

In many ways, the U.S.-Israeli war against Iran and the war in Gaza that preceded it seem transformative. After decades of shadow warfare, Iran and Israel have now attacked each other’s homelands directly. And Israel and the United States have joined forces in a genuinely novel way to wage war against Iran.

For more than a decade, assessments of Chinese strategy in the Middle East and Africa have focused on assets, including the ports Chinese firms own, the pipelines they finance, and the networks they build. This lens has produced familiar maps of Chinese “footholds” and debates over future military bases, but ownership alone reveals less about influence.

The more useful question is not what China owns, but how Chinese firms become embedded in the operational and digital systems that keep trade corridors moving. Influence derives not from controlling infrastructure outright but from participating in the governance of the networks that move goods, data, finance, and information across them.

United States Central Command (CENTCOM), one of the US Department of Defense’s (DoD) six geographical combatant commands, is responsible for countering threats, responding to crises, and strengthening regional stability in the Middle East, Central Asia, and parts of South Asia.

Something more consequential than another oil market disruption is underway. The Iran war has exposed and accelerated an institutional weakness within OPEC that had been building for years. The closure of the Strait of Hormuz, the UAE’s departure, Iraq’s brief flirtation with exit, and the continued rise of U.S. oil production all point to a deeper question about the cartel’s durability. The issue has shifted from OPEC’s ability to manage crises toward whether its model of collective discipline can withstand mounting structural strain.

Iran is transforming its Axis of Resistance into a decentralized, Yemen-centered network that leverages the Houthis to threaten both the Strait of Hormuz and the Bab el-Mandeb, extending Tehran’s coercive reach over the world’s key maritime chokepoints and reshaping the post-war balance in the Middle East and Red Sea.

During the opening days of the 2025–2026 U.S.–Israel war with Iran, Kuwait’s military briefings highlighted intercepted Iranian missiles and drones while revealing little about strike locations or damage. The approach reflected a familiar wartime dilemma in which governments must reassure populations while limiting information that could aid adversaries or fuel uncertainty. Yet Kuwait’s response revealed a broader shift across the Gulf. Information was no longer simply a messaging tool; it had become part of the battlefield.

A year and a half into Donald Trump’s second administration, the Middle East is far from where the president had hoped or expected it would be.