Iran

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.

It is now clear the United States is sinking into the quagmire of its war with Iran with no clear idea of how to get out. More than five months of intermittent bombing of Iran have not brought Tehran any closer to surrender. Recurring threats by US President Donald Trump to launch a massive military campaign against the country aren’t causing Iran to submit to US demands.

As the US-Israel-Iran war enters its sixth month, the conflict has taken a sharp turn. After a brief lull in the fighting, Iran launched a surprise ballistic missile attack on US forces on July 28, and the US and Saudi Arabia struck back at Iran-backed militias in Iraq, marking Riyadh’s entry into the war. MEI Senior Fellow Alex Vatanka joins host Alistair Taylor to discuss the escalation, what may come next, and the state of talks over sharing the Strait of Hormuz.

This report considers the lack of Palestinian political agency as a driver of regional insecurity that must be resolved before wider conflicts can be settled. The author analyses the conditions that contributed to the destruction of Palestinian political capacity, including Israeli policies, Palestinian shortcomings, and exploitation by Iran, and makes recommendations for an Arab strategic initiative.

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.

President Trump’s family businesses are once again in the spotlight as a new financial disclosure showed they earned $2 billion in income in 2025 — a dramatic increase on the year before, with much of it coming from Gulf entities, raising emoluments concerns. Mounting perceptions of corruption, combined with unresolved crises in Iran and Israel-Palestine, are eroding trust among key partners in the Middle East. With the 2026 midterms approaching, these entanglements could represent a major political vulnerability and further undermine America’s already-strained standing in the region.

This study proposes a model for constraining and verifying Iran’s ballistic missile arsenal by employing a layered Strategic Verification Model with seven components: comprehensive baseline declarations; missile test and launch monitoring; intrusive inspections; quantitative and qualitative limits on missile capabilities; production controls, especially on solid-fuel manufacturing; a robust enforcement and compliance architecture; and regional confidence building measures.

The US administration appears to have great expectations for Iraq’s new prime minister, Ali Falah al-Zaidi. But the expectations need to be tempered.