John Calabrese

Iran is once again in the midst of nationwide unrest. Protests that erupted in late 2025—initially driven by an acute economic crisis rapidly spreading across the entire country—are ongoing. Whether this latest wave culminates in revolutionary rupture, regime adaptation, or a familiar cycle of repression and exhaustion remains uncertain. What is already clear, however, is that the structural forces animating the unrest extend far beyond the present.

At the heart of Iran’s protests lies a set of sharp and enduring regional disparities that have long shaped patterns of development, political control, and social mobilization. These center–periphery divides have repeatedly rendered Iran’s border provinces more vulnerable to deprivation, marginalization, and protest, while allowing the political and economic core to absorb shocks with greater resilience. Today, those divides are under unprecedented strain, as economic hardship is no longer confined to the margins but increasingly shared across the country.

Saudi Arabia is making a bold push to rewire the rules of the game for foreign investment within the Kingdom. The proposed lifting of the 49 percent foreign‐ownership cap in publicly listed companies is emerging as the next frontier of that effort. This reform, scheduled to take effect on February 1, could change the calculus for active and passive global capital, drive fresh scrutiny of regulatory constraints, and test the Kingdom’s ability to follow through in what may prove to be a tight balance between opening up and preserving sovereign control.

Beginning in early December 2025, UAE-backed Southern Transitional Council (STC) forces launched an offensive in eastern Yemen, seizing Seiyun and key military and administrative sites across Wadi Hadhramaut before advancing into al-Mahrah, as Saudi-aligned tribal and government units withdrew under mounting political and military pressure.

Following another year of pivotal developments and transformational change, the Middle East could be poised to turn the page on many of its long-running conflicts and sources of instability. But lasting fruits of the processes begun in 2025 will require a determined, intentional focus by regional actors and the United States. Given current trends, MEI experts weigh in on where the region may be headed in 2026.

The Strategic Mutual Defense Agreement (SMDA) between Saudi Arabia and Pakistan, signed in Riyadh on September 17, is far more than a bilateral pledge. It represents a profound reordering of alignments in the Gulf and South Asia, reflecting and reinforcing the broader erosion of US preeminence in the Eurasian security architecture. While much of the initial commentary centered on the striking commitment of a wealthy Gulf monarchy to the defense of a nuclear-armed South Asian state, as well as the question of whether Pakistan had in fact extended its nuclear umbrella to Saudi Arabia, the deeper story is arguably China’s potential advance.

The coming weeks may prove decisive in Europe’s long struggle to manage Iran’s nuclear ambitions. On Aug. 28, the United Kingdom, France, and Germany announced they will trigger the “snapback” sanctions mechanism. Whether Europe’s gamble succeeds will determine both the future of non-proliferation and the credibility of Europe as a strategic actor.

The Hamas attack on Oct. 7, 2023, shattered Israel’s long-standing security paradigm, replacing limited deterrence with an ambitious campaign aimed at dismantling Hamas, confronting Hizballah and other Iranian proxies, and directly targeting Iran’s nuclear program with the support of the United States. In stark contrast, Saudi Arabia has prioritized regional stability and de-escalation, restoring relations with Iran, and focusing on its Vision 2030 economic transformation.

Last June’s Israel-Iran conflict became a revealing stress test for Beijing’s Middle East strategy, its role in global diplomacy, and the coherence of what some have described as an emergent “Axis of Upheaval” between China, Russia, and Iran.

On June 19, false reports of an Israeli strike on Iran’s Bushehr nuclear plant sparked alarm across the Gulf. Though denied by Israeli officials, the claim traces back to a warning from Qatar’s prime minister of a potential catastrophe in the event of nuclear contamination — no water, no food, no life — due to the Gulf’s reliance on desalinated seawater. Gulf governments moved quickly to reassure the public that no radiation had been detected, but the episode underscored the region’s growing sense of vulnerability. A regional approach to water security could help to mitigate such risks.

The United States struck three nuclear facilities in Iran on the evening of June 21, in the midst of the ongoing Israel-Iran conflict. MEI scholars provide real-time analysis to help make sense of what this escalation means and what might come next.

MEI’s experts react to the Israeli strikes on Iran’s nuclear program and the consequences for the wider region.

China’s response to the Syrian refugee crisis should be viewed within the broader context of its evolving approach to humanitarian aid and its overall involvement and objectives in the Syrian conflict.

Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.

Strategically located at the mouth of the Strait of Hormuz on the Arabian Sea, Gwadar, once a derelict port, was revitalized as part of the broader development of China-Pakistan Economic Corridor (CPEC) and declared fully operational in 2021. Can a renewed focus on the Gwadar port and the socio-economic and security situation of the surrounding region help Islamabad and Beijing rescue CPEC from failure?