The Coming Debate Over the US Military Presence in the Gulf
The war with Iran is hardly over, but the debate over the shape and nature of the post-conflict American posture in the Gulf region is just beginning. Undoubtedly, how the war ends will affect how the United States adjusts its role. While this debate is still in its early stages, something of a conventional wisdom is already developing in policy circles that could seriously compromise American influence in the Middle East.
The Multiple Costs of the US–Iran War – From Hormuz to Europe and South Asia: The Widening Economic and Political Geography of the Conflict
Wars are decided by those who hold military power, but their costs are increasingly borne by those who have little or no voice in the decisions that start them. The US–Iran war shows this imbalance very clearly. Its economic consequences have gone far beyond the battlefield and have disrupted energy markets, trade routes, food supplies, public finances and investment in the Gulf, Europe, Africa and Asia. The most striking feature of the conflict, however, is not only the size of the damage but its very unequal distribution.
Geopolitical influence over trade increasingly rests on controlling the systems that make them work. The Middle East illustrates the stakes. US ports, cable corridors, cloud facilities, artificial intelligence (AI) investments, and maritime routes connect regional economies to global commerce while exposing them to external decisions and disruptions. For the United States, the challenge is to translate technological advantage into resilient networks rather than rely on centrality that can itself become a source of vulnerability and coercion.
Bonus Episode: Previewing Israel’s First Post-October 7 Election
Israel is preparing to hold what may be its most consequential election in decades. On October 27, Prime Minister Benjamin Netanyahu will face his first electoral test since October 7, 2023. In this bonus episode of Middle East Focus, we present the audio from a recent MEI webinar, hosted in Israel on the eve of the vote. Senior Fellow Natan Sachs is joined by Dr. Shira Efron, Distinguished Chair for Israel Policy and senior fellow at the RAND Corporation, and Neri Zilber, veteran journalist and Financial Times correspondent. They explore what’s at stake in this historic election and how different outcomes could reshape Israel’s domestic politics and the wider region.
Israel Was Built on Hope. This Election May Be Our Last Chance to Save It
Israel’s national anthem, Hatikva, means “the hope.” Israel is not just another country, but the culmination of a 2,000-year-old dream of national redemption. The rebirth of the Jewish people’s ancestral homeland, just three years after the Holocaust, was a miraculous triumph of hope over all odds.
Today, that hope has been shattered and the elections on October 27 have become the most consequential in Israel’s history.
One striking thing about US President Donald Trump’s endorsement of Israeli Prime Minister Benjamin Netanyahu this past week is how isolated he was in making this call. The Israeli Prime Minister has become a widely detested figure worldwide following Israel’s war in Gaza—where Israel committed war crimes. This disdain was clearly on display in New York in September when dozens of diplomats streamed out of the hall during Netanyahu’s speech.
Crude oil is flowing out of the Gulf again, but the market is no better prepared for another disruption in the Strait of Hormuz. It has assembled a temporary system for managing one. Crude exports from the Gulf, excluding Iran, returned to pre-war levels in September, while total Gulf shipments reached 15.5 million barrels a day, more than 80% of the pre-conflict volume.
Many of the immediate consequences of the Israeli-American war with Iran are already clear. The further emergence of drones and missiles as dominant weapons of war; the danger to the global economy from the threats to vital chokepoints such as the Strait of Hormuz and the Bab el-Mandeb; and the inadequacy of US weapons procurement, among other issues, have garnered widespread and entirely merited attention.
In less than two decades, a string of offshore discoveries has turned the Eastern Mediterranean into a significant gas-producing region, making Israel an exporter, twice lifting Egypt into the ranks of liquefied natural gas (LNG) exporters, and giving Cyprus finds it has yet to bring to market. This backgrounder explores the potential and challenges of exploiting and managing LNG resources in the region.
Deadlock in Gaza and the West Bank at a Breaking Point
A year after world leaders gathered in Sharm el-Sheikh to mark the end of the war in Gaza, Israel controls about 70% of the Strip, Hamas retains its arms, and reconstruction has yet to begin. Meanwhile, in the West Bank, record settler violence and settlement expansion are colliding with a Palestinian Authority on the brink of fiscal collapse. Hosts Alistair Taylor and Matthew Czekaj are joined by MEI Associate Fellow Tahani Mustafa to discuss why the Gaza peace plan is deadlocked, an increasingly emboldened Israel in the West Bank, Mahmoud Abbas’s postponement of Palestinian elections, the Palestinian Authority’s deepening economic crisis, and what role the US could play.
The Israeli government’s plan to build 3,401 housing units in the 12-square-kilometer E-1 corridor, between Jerusalem’s municipal boundary and the Israeli settlement of Ma’ale Adumim, would cut the West Bank in two. Israeli officials are under no illusion about the implications. Announcing the plan’s approval in August 2025, Finance Minister Bezalel Smotrich called it a “significant step that practically erases the two-state delusion.”
Proponents of the war with Iran have taken recent increases in crude-oil flows through the Strait of Hormuz as proof that the US strategy is finally working. President Trump is so confident in this that he recently rejected a seven-day plan, set forward by Iran’s foreign ministry, to end the war and open the strait. The United States is “winning tremendously,” Trump boasted.
Special Episode: Saudi Oil After the East-West Pipeline Attack
Saudi Arabia’s East-West pipeline is back in operation after a drone attack from Iraq, blamed on Iran-backed militias, shut it down for nearly two weeks. The pipeline is the kingdom’s main way to export oil while the Strait of Hormuz is closed, so the shutdown dealt another blow to global energy markets. How vulnerable is this route, and what does that mean for the kingdom and the world economy? This episode of Middle East Focus features a recent MEI Virtual Briefing in which Director of Communications Zeina Al-Shaib is joined by MEI Senior Fellow Colby Connelly and MEI Affiliate Yesar Al-Maleki. They examine the new geopolitical risks facing the oil market, what further losses of global supply could mean for Saudi Arabia and the world economy, and which buffers outside the Persian Gulf could ease the pressure.
This article is part of a collection of short essays written by the Fellows of the Middle East Institute to explore aspects of the ongoing war with Iran. The intent of the collection is to help readers see new and unexpected elements of the dynamics and impact of the ongoing hostilities and to think harder, deeper, and broader about the implications of the conflict.
NATO: Time for a Europe-US Transatlantic Security Bargain
More than 30 years after NATO overcame the threat from the Eastern Bloc, the alliance is struggling. Russia is waging war on Ukraine, the US is trying to pivot to Asia, and fresh conflict has erupted on Europe’s doorstep, with Russia and China both seeking advantage. Unexpectedly, for an alliance feeling unmoored, herein lies opportunity.
