Research & Commentary Results

When Iranian drone strikes hit two of Amazon’s data centers in the United Arab Emirates and Bahrain in early March, amid the ongoing US-Israeli war with Iran, much of the media’s reflex was to declare it the end of the Gulf’s artificial intelligence (AI) ambitions. That read is misguided, and it misses why what Iran was trying to accomplish failed.

Two and a half months into the blockade of the Strait of Hormuz, what lessons can markets draw from the resulting global energy shock? Colby Connelly, MEI Senior Fellow, joins hosts Alistair Taylor and Matthew Czekaj to assess the crisis’s impact on the energy industry. Together, they examine how producers are responding to the conflict in both the short and long term, how this moment differs from past energy disruptions, and how regional reverberations may shape international energy policies going forward.

This is a special edition of the MENA Energy Recap — a quarterly review of key energy developments that took place in the region from January through March of 2026 and what they signal in the months ahead. For Q1-26, the recap considers some of the long-term implications of the ongoing war in the region, which have caused the largest energy supply disruption in history, and what lessons these events hold for both near- and long-term energy dynamics in both the Middle East and the wider world.

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 UAE’s departure represents an undeniable strategic setback for OPEC+. Its most likely response will be to shore up the amount of output capacity subject to quotas. For now, there are two clear pathways it could take to accomplish this, although neither represents a quick fix.

The Middle East is both central to key United States interests and prone to instability. Yet US national security and defense strategic guidance has struggled to account for the unique demands of the region. Calls for strategic divestiture from the region have grown in prominence among analysts and policymakers alike in recent years.

President Donald Trump now appears to share a view gaining traction in some policy circles: that sustained pressure on Iran’s oil sector could inflict lasting damage on its production and eventually force Tehran to compromise. The thesis is appealingly simple, yet dangerously incomplete.

President Donald Trump has an opportunity to do something no American president has managed in nearly half a century: end the war between Israel and Lebanon for good.

For two decades, US drones hunting terrorists across the mountains of South Asia were the symbol of American military power: precise, lethal, and unmatched. That era is now over. Drones are no longer exquisite tools of counterterrorism and have evolved into something far more common and destabilizing: cheap, expendable, and mass-produced tools of attrition.

Last Thursday, the US announced a 10-day cease-fire “to enable peace negotiations between Israel and Lebanon”. The State Department statement – reportedly agreed to by both governments – marked a significant diplomatic shift. It included an affirmation that “the two countries are not at war,” a commitment to work toward “full recognition of each other’s sovereignty and territorial integrity,” as well as “achieving a permanent agreement that ensures lasting security, stability, and peace.”

This bonus episode of Middle East Focus features a recent MEI Virtual Briefing. Director of Communications Zeina Al-Shaib is joined by MEI Distinguished Diplomatic Fellows Alan Eyre and Daniel Benaim to discuss the historic talks held in Pakistan last weekend between the United States and Iran. Tehran insists the US failed to gain its trust, while the US made its red lines clear and declared it would blockade Iranian ports in the Persian Gulf. What happens next? Eyre and Benaim offer insights into what goes on behind the scenes at such negotiations; identify the core issues at play; explore potential incentives to end the war; analyze the weaponization of energy; as well as assess the role of other regional players in this conflict.

In the midst of a fragile cease-fire to the US-Israeli war on Iran, European leaders remain reluctant to get involved in another Middle Eastern war and are bristling under threats and insults from the US. As the NATO alliance frays and Russian attacks on Ukraine continue, the moment for Europe to take action has arrived, and is fleeting.