The war with the US and Israel has intensified pressure on the Iranian economy, but it has not represented a fundamentally new shock. The key question is not whether pressure exists, but whether it can be made decisive.
As the international community focuses on the regional and economic reverberations of the US-Israel-Iran war, the wartime experiences of ordinary Iranians and their aspirations for the future have received much less attention. Arash Azizi, a postdoctoral associate at Yale University and contributing writer at The Atlantic, joins hosts Alistair Taylor and Matthew Czekaj to discuss the war’s repercussions for the Iranian population and how the outcome of the conflict may shape the peoples’ lives going forward. Together, they explore Iran’s internal politics, the viability of the opposition, and the conditions needed to achieve democracy in Iran.
The Iran war has posed significant immediate challenges for Turkey, including rising energy prices. But Turkish officials think that Ankara could reap benefits from the war in the long term.
The following study discusses the role of Lebanon’s gold reserves in the establishment of a currency board and evaluates four policy options: a true currency board, constrained central bank reform, full dollarization, and a unified managed float. Gold reserves are relevant under all four. The conclusion is consistent across them: no monetary framework, however carefully designed and however well backed, can substitute for the prior political decision on who bears Lebanon’s losses and how the state will finance itself sustainably.
This special episode of Middle East Focus features a conversation from MEI’s Virtual Briefing Series. Host Alistair Taylor is joined by former National Security Council Senior Director Stephen Flanagan and MEI Senior Fellow Iulia-Sabina Joja to discuss the impacts of the Iran war on US-European relations. The conflict has hit Europe’s economy hard and created deep divisions across the continent, even as some European countries play a quiet supporting role to the US. President Donald Trump has called for NATO member states to help secure shipping through the Iranian-blocked Strait of Hormuz, a critical chokepoint for international maritime trade. Flanagan and Joja explore the prospects for stepped-up European military involvement, the knock-on effects on the war in Ukraine, and the potential longer-term impact on the future of the US-European alliance.
When the United States and Israel launched military operations against Iran a month ago, the Middle East was plunged into debilitating conflict. Nevertheless, Syria has remarkably just completed its most stable month in 15 years. Damascus and its international partners must capitalize on this opportunity.
The Gulf Cooperation Council (GCC) states are confronting the greatest threat to their economic security and energy strategy since their formation. The economic fallout of the US-Israeli war with Iran is severe, but uneven across the Gulf. So too is each state’s ability to sustain energy exports and protect critical infrastructure—both of which have been targeted unequally by Iran.
The US-Israeli war against Iran has created the largest disruption to global oil and liquefied natural gas supplies in modern history. There is a tremendous amount of economic uncertainty for Gulf states to navigate, and it will reshape the way they engage with one another and with Iran, Israel, and the United States for years to come. But this war has also laid bare how urgently the United States needs to update its own approach toward the Gulf states when it comes to energy.
Israel’s escalating campaign against Iran-backed Hezbollah is rapidly turning Lebanon into one of the most unstable fronts in the wider US-Israel confrontation with Iran — pushing an already fragile state to the brink. The war is tearing at Lebanon’s sectarian and political fabric, displacing Shiite communities and deepening polarization between Hezbollah and its rivals.
China’s expanding role in the Middle East is often framed as geopolitical rivalry with other global powers, including the United States, Russia, India, and others; but this lens obscures the strategic subtlety of Beijing’s approach.
MEI Senior Fellow Jaser AbuMousa joins hosts Alistair Taylor and Matthew Czekaj to unpack how Hamas is navigating the US-Israel conflict with Iran and its impact on Gaza. Nearly two and a half years after the start of the Gaza war, international attention has shifted away from the humanitarian crisis in the devastated coastal strip. Meanwhile, Hamas’ primary state sponsor, Iran, has been severely weakened by US-Israeli military strikes and the death of former Supreme Leader Ayatollah Ali Khamenei. AbuMousa examines how this could affect Hamas’ trajectory moving forward and its place within the Axis of Resistance, as well as what it all means for the Palestinian people.
North African states feel the consequences of the US-Israel war with Iran less through direct security risks than through economic shocks that affect long-term stability. The region remains highly exposed to disruptions in global food and energy markets, where price spikes can lead to fiscal pressure, inflation, and social unrest.
The economic stress points vary considerably across the Gulf. Assuming a resumption of exports by May, Kuwait, Iraq, Bahrain, and Qatar still face sharply declining revenues and contracting GDP—as much as 14 percent in Kuwait and Qatar—because of shut ins, time to restart, and lack of alternative delivery routes. After the Iranian attacks on Ras Laffan, Qatar’s economic outlook and time to recovery look much more difficult.