Monday Briefing: The Middle East is the closest it has ever been to an all-out war
After 10 months of Israel’s war on Gaza, the US administration has lost control over its ally and the fear of its opponents. As a result, Washington has only limited, if any, impact on the cost-benefit escalation calculus of the fighting sides. The Middle East is today the closest it has ever been to an all-out multi-front regional war.
Russia and China’s differing engagements with the Houthis
Although Russia and China are in regular dialogue with the Houthis, the motivations that undergird the engagements of both countries differ markedly. The Houthis regard both Russia and China as partners against American unilateralism but have a warmer relationship with Moscow.
The situation in the Red Sea is not getting better
The current situation is not only intolerable – it is unsustainable. It is time to recognize that the Houthis, with strong and persistent support from Iran, are in a position to hold not only the US but virtually the entire global system hostage.
Wide gap between the Egyptian government’s rosy figures and the economic hardship suffered by millions
For Egyptian officials, June should have been a month to celebrate. And yet none of the seeming macroeconomic successes that the government recorded brought much reassurance to the average Egyptian, who has continued to experience currency shortages, an unreliable energy grid, and fears of a resurgent spike in inflation.
What Comes Next for Turkey? Prospects for Change on the Political, Economic, and Foreign Policy Fronts
After two decades in power and following the Justice and Development Party’s historic defeat in the 2024 local elections, Turkish President Recep Tayyip Erdoğan is now at his most vulnerable. What comes next is not only important for the future prospects of Turkish democracy but also holds important lessons for autocrats across the world. Scholars Evren Balta, Seda Demiralp, Edgar Şar, and M. Murat Kubilay seek to answer key questions about the country’s political, economic, and foreign policy trajectory in a new report from the Middle East Institute.
The weight of past mistakes and the post-election push for economic normalization
For years under President Recep Tayyip Erdoğan, Turkey pursued an unconventional monetary policy. The situation, long untenable, finally became unsustainable in the run-up to the presidential and parliamentary elections in May 2023. In the immediate aftermath of the vote, President Erdoğan announced a dramatic shift, returning to orthodox monetary policy. While there have been tangible improvements on a number of fronts as a result, the country faces both declining household purchasing power in the short term and a range of broader economic challenges in the longer run.
Central Asian states look to Iran as they seek to expand regional transit corridors
When Russia launched its full-scale invasion of Ukraine in late February 2022, it prompted the Central Asian states, and others, to reconsider Iran’s potential role as a transit country. In a little more than two years, Central Asia’s view of Iran has changed from international pariah to key link in lucrative trade routes.
New EU aid and investment in Egypt linked to migration control
On June 29, at an aid and investment conference in Cairo, Egypt and the EU reached a €1 billion investment deal, and over 20 MoUs, collectively worth approximately €40 billion in private investment, were signed on the sidelines. Little mention has been made of migration in the new European agreement with Egypt, but there is little doubt that it is a pivotal factor.
Why Pakistan is looking to Saudi Arabia and the UAE to ramp up investment
Pakistan’s government is pursuing a two-track approach to stabilize the country’s long-troubled economy. It is engaged in lengthy negotiations with the IMF to secure at least $6 billion in loans to shore up its ability to service its external debt. At the same time, Islamabad is also trying to woo its Gulf allies, most notably Saudi Arabia and the UAE, in a bid to diversify its sources of external financing, address the lingering threat of insolvency, and put its economy on an upward trajectory of sustainable growth.
A Turkish foreign minister in China: Subtitles of a silent visit
The most defining aspect of the Sino-Turkish relationship is the need for Turkey to find economic or geopolitical leverage to attain some semblance of equality with China. During Turkish Foreign Minister Hakan Fidan’s recent visit to Beijing, his subtle references to the Turkic and Islamic credentials of Xinjiang may have gotten lost in translation for the Chinese.
Beyond guns and oil: The emerging soft power rivalry between Iran and Saudi Arabia
A little over a year ago, the icy relations between Iran and Saudi Arabia underwent a remarkable thaw. But beneath this détente, a new front emerged in their longstanding rivalry — one rooted not in geopolitics or religious ideologies but in the realm of soft power and societal aspirations.
The clock is ticking to reset Kuwait’s economic course and reinstate legislature
Kuwait’s emir, Sheikh Mishal Al Ahmad Al Jaber Al Sabah, took his next step in governance without a parliament in place on June 1, when he appointed Sheikh Sabah Khalid Al Sabah as crown prince. Although the timing of the announcement suspending portions of the constitution and dissolving the parliament caught most observers off guard, the emir’s decision was not surprising.
