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.
Hosts Alistair Taylor and Matthew Czekaj are joined by MEI Distinguished Diplomatic Fellow Amb. (ret.) Robert S. Ford to examine what is at stake for Iraq in the Iran war. The only country to have been hit by both sides, Iraq is caught in the middle of a regional conflict, with the local Iranian-backed Popular Mobilization Forces (PMF) carrying out attacks on American interests and personnel — and the US responding. This escalation comes at a period of internal political transition in Iraq, which has been locked in negotiations to form a new government since the November 2025 elections. Ford, who served as Deputy and later Acting Ambassador in Baghdad from 2008 until 2010, unpacks how Iraq is navigating the current moment, how the Kurdistan region fits into this equation, and what this all means for the future of US-Iraqi relations.
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.
Libya’s stability has taken on renewed strategic importance as the impact of the US and Israeli war with Iran reverberates through global energy markets. Sustaining existing Libyan oil production depends on a governing arrangement capable of keeping ports open, pipelines flowing, and revenues distributed without triggering conflict.
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.
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.
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.
Gulf states — including their national oil companies and sovereign and related entities — are energy giants. They understand the risks of a prolonged threat from Iran and did not choose this war. They also recognize the risks of their geographic location, should the region endure another bout of instability and dislocation from a fragmented and collapsing neighbor.
With the Strait of Hormuz closed and oil production from Iraq’s south in free fall, Baghdad’s failure to maximize the Iraq-Turkey Pipeline is no longer a policy dispute. It is a national emergency.
The Israeli-U.S. military strikes on Iran that began on February 28 have done more than ignite a Middle Eastern war. They have sent shockwaves rolling across Asia, from the Strait of Hormuz to the Sea of Japan, exposing the brittle underpinnings of regional energy systems, straining diplomatic balancing acts, and forcing governments to make hard choices they have long deferred.