The Multiple Costs of the US–Iran War – From Hormuz to Europe and South Asia: The Widening Economic and Political Geography of the Conflict
Wars are decided by those who hold military power, but their costs are increasingly borne by those who have little or no voice in the decisions that start them. The US–Iran war shows this imbalance very clearly. Its economic consequences have gone far beyond the battlefield and have disrupted energy markets, trade routes, food supplies, public finances and investment in the Gulf, Europe, Africa and Asia. The most striking feature of the conflict, however, is not only the size of the damage but its very unequal distribution.
One striking thing about US President Donald Trump’s endorsement of Israeli Prime Minister Benjamin Netanyahu this past week is how isolated he was in making this call. The Israeli Prime Minister has become a widely detested figure worldwide following Israel’s war in Gaza—where Israel committed war crimes. This disdain was clearly on display in New York in September when dozens of diplomats streamed out of the hall during Netanyahu’s speech.
Iran’s New Defense Minister Is a Missile Man, Not a Military Man
Mehrdad Akhlaghi was appointed defense minister in October 2026 by Iranian President Masoud Pezeshkian. He is an unusual choice, as, unlike most of his predecessors, he does not come from a uniformed military background. And his appointment comes arguably at the most sensitive time in the history of the Islamic Republic.
US President Donald Trump recently proposed that Syria intervene militarily against Hizballah in Lebanon. Is that a good idea? This episode of Middle East Focus features a recent MEI Virtual Briefing. Director of Communications Zeina Al-Shaib is joined by Ambassador David Hale, MEI Distinguished Diplomatic Fellow and Charles Lister, MEI Senior Fellow. Together they examine the prospects and implications of renewed Syrian involvement in Lebanon, the potential impact on US relations with both countries, and how evolving dynamics in Lebanon and Syria could reshape the regional balance of power and affect countries such as Turkey and Israel.
The 2026 Iran war has made Lebanon a core Gulf security concern, and Saudi Arabia, the UAE, and Qatar now have a narrow opportunity to curb Hizballah’s influence by leading reconstruction, strengthening Lebanese state institutions, and tying economic re-engagement to reform.
Unconditional surrender of an adversary is possible only if the victor conducts unconditional war, which the American public clearly was not prepared for in the conflict with Iran. Ending this conflict was always going to entail some compromises. The U.S.-Iran MOU is being oversold by virtually everyone. The tangible parts of it are a ceasefire, sanctions relief for Iran and the reopening of Hormuz. Everything else in the agreement is conditioned to good faith negotiations on Iran’s nuclear program.
This backgrounder provides an overview of the Gulf Cooperation Council (GCC), a regional political and economic alliance comprising six states in the Arabian Peninsula: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
A Strategic Conundrum: Pakistan’s Transit Corridor to Iran as Lifeline or Liability
The US-Iran standoff over the Strait of Hormuz — disruptive to global trade and energy flows, and devastating for debt-burdened economies — has handed Pakistan an unexpected geoeconomic opportunity, one that may persist even if the framework agreement announced on June 14 results in a lasting peace and permanent reopening of the strait. But seizing it will have interlocking consequences for Islamabad’s ties with Tehran, Washington, and the Gulf states.
The Gulf’s Strategic Paradox: Lost Confidence in the US Security Umbrella, Enduring Trust in the Dollar
This essay argues that the current debate about the future of the international monetary system is not really about Gulf currencies, oil pricing, or de-dollarization in the narrow technical sense. It is about something deeper and more important: whether institutional trust can survive when geopolitical certainty is eroding.
A fragile cease-fire between Lebanon and Israel is barely holding as military delegations from both countries arrive in Washington for a new round of direct talks scheduled for this Friday. But diplomatic success could mean new strategic opportunities for the Lebanese nation. Guest host and MEI Senior Fellow Brian Katulis is joined by Lebanese Member of Parliament Fouad Makhzoumi to unpack the challenges facing the Lebanese government today, Hizballah’s influence over state institutions, and what all of this means for the country’s future. Makhzoumi also reflects on his personal journey and what inspired him to transition from business to politics in an effort to help shape a better life for his granddaughters in Lebanon.
How Israel-Backed Sweida Became Syria’s Narcotics Capital
In the early hours of Sunday, May 3, Jordanian F-16 fighter jets crossed into Syrian airspace and launched strikes on at least six locations in the southern province of Sweida. In a statement issued hours later, Jordan’s military said that “Operation Jordanian Deterrence” had targeted “factories, facilities and warehouses used by trafficking groups as launch points for smuggling operations into Jordan.”
The Houthis are a political-military faction and Zaydi religious movement founded in northwestern Yemen in the 1980s. A key member of Iran’s Axis of Resistance with links to other militant organizations in the Arabian Peninsula and the Horn of Africa, the group has continued to pose a threat to Western interests on a global scale.
The oldest peer-reviewed publication dedicated to the study of the modern Middle East, MEI’s flagship journal covers politics, society, and culture in the region.
