Research & Commentary Results

Something more consequential than another oil market disruption is underway. The Iran war has exposed and accelerated an institutional weakness within OPEC that had been building for years. The closure of the Strait of Hormuz, the UAE’s departure, Iraq’s brief flirtation with exit, and the continued rise of U.S. oil production all point to a deeper question about the cartel’s durability. The issue has shifted from OPEC’s ability to manage crises toward whether its model of collective discipline can withstand mounting structural strain.

The Islamabad Memorandum of Understanding (MoU) between the United States and Iran may have ended one of the most consequential Middle Eastern crises in decades, but it has not resolved the strategic problem it exposed. Whether the 60-day talks it set in motion will produce a final agreement remains far from certain.Yet the central lessons are already clear: Iran has preserved significant leverage, Washington has had to scale back its ambitions, and Europe and the Gulf face the prospect of protracted regional tension. Europe and the Gulf should therefore use the aftermath of the US-Iran deal to articulate their own “other MoU”: a Europe-Gulf Resilience initiative.

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.

After nearly four months of war, the US and Iran have signed a 14-point memorandum of understanding declaring the conflict over, reopening the Strait of Hormuz, and beginning talks toward a final deal. Alan Eyre, MEI Distinguished Diplomatic Fellow and a core member of the 2015 JCPOA negotiating team, joins host Alistair Taylor to unpack the deal’s implications for both countries, its ripple effects across the region, and what a lasting settlement would take.

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.

Syria’s shattered energy sector is being rebuilt at a moment of unusual strategic flux across the Middle East, one defined by Iran’s military degradation following sustained U.S. and Israeli strikes in February and March; Russia’s prolonged absorption in its war in Ukraine; and China’s preference for commercial caution over political risk. Together, these shifts have weakened or distracted the external powers that once dominated Syria’s trajectory. The Gulf states have moved in to decisively fill the opening.

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.

Few events have so abruptly collapsed the boundary between energy policy and national security as the US–Israel war on Iran that erupted in February 2026. The near-closure of the Strait of Hormuz triggered what the International Energy Agency described as the largest oil supply shock on record —driving up energy prices, fueling inflation in Europe, and disrupting supply chains worldwide.

As Washington and Tehran edge closer to escalation, the most critical line of communication keeping the crisis from spiraling is being run not by polished diplomats, but by an unlikely figure: a Pakistani general. Field Marshal Asim Munir, Pakistan’s powerful army chief, has quietly become the key intermediary in the U.S.-Iran standoff, managing what may be the most important backchannel between the two sides. The mediation has thrust Pakistan to the center of the crisis while exposing it to enormous risk.

Despite sustained efforts to prioritize energy security across successive policy cycles, China remains exposed to external supply chains it does not control. The core problem is not simply import dependence, but reliance on maritime transit routes – particularly through the Strait of Hormuz – whose security ultimately lies beyond Beijing’s authority. The escalation of the Israel-U.S. war with Iran and the resulting disruption of traffic through Hormuz has transformed a long-recognized strategic risk into an immediate constraint, revealing the limits of China’s ability to ensure stable energy access under conditions of geopolitical contestation.

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.

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.

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.

The Iran war has posed significant immediate challenges for Turkey, including rising energy prices. But Turkish officials think that Ankara could reap benefits from the war in the long term.