Economics

China’s expanding role in the Middle East is often framed as geopolitical rivalry with other global powers, including the United States, Russia, India, and others; but this lens obscures the strategic subtlety of Beijing’s approach.

North African states feel the consequences of the US-Israel war with Iran less through direct security risks than through economic shocks that affect long-term stability. The region remains highly exposed to disruptions in global food and energy markets, where price spikes can lead to fiscal pressure, inflation, and social unrest.

The economic stress points vary considerably across the Gulf. Assuming a resumption of exports by May, Kuwait, Iraq, Bahrain, and Qatar still face sharply declining revenues and contracting GDP—as much as 14 percent in Kuwait and Qatar—because of shut ins, time to restart, and lack of alternative delivery routes. After the Iranian attacks on Ras Laffan, Qatar’s economic outlook and time to recovery look much more difficult.

Gulf states — including their national oil companies and sovereign and related entities — are energy giants. They understand the risks of a prolonged threat from Iran and did not choose this war. They also recognize the risks of their geographic location, should the region endure another bout of instability and dislocation from a fragmented and collapsing neighbor.

Crude oil legally sanctioned by the United States and its allies today makes up an estimated 18% of global tanker capacity, or 6-7% of total unrefined petroleum flows — shares that have been growing. Increased pressure on Russian exports and US intervention in Venezuela have further constrained Russian flows and temporarily removed Venezuela, the smallest sanctioned producer, from the market. Iranian exports, however, remain largely untouched.

MEI Senior Fellow Mohammed Soliman joins hosts Alistair Taylor and Matthew Czekaj to discuss his new book, West Asia: A New American Grand Strategy in the Middle East. The book argues that it is time for the United States to move decisively away from nation-building and focus instead on order-building, outlining a framework for a new regional order that links Europe to the Indo-Pacific. Soliman also shares how he conceived of the core ideas behind his book and explains why his thesis is especially relevant in today’s geopolitical, economic, and technological landscape.

On Sunday, December 28, Iran’s latest wave of unrest began not on a university campus or in a symbolic political square, but in the very heart of the country’s economic sphere: the Grand Bazaar commercial center in downtown Tehran. What distinguishes the current moment is not simply the persistence of unrest but its emotional register. Iranian commentary increasingly describes not just hardship but a collapse of expectations of a better future.

This article examines the changing volume and allocations of investment flows between China and the Gulf Cooperation Council (GCC) states over the last two decades, roughly from 2003 to the present.

Mohammed bin Salman, the crown prince, prime minister, and main decision-maker in Saudi Arabia, left Washington and his summit with President Donald Trump with a number of promises made and commitments received. But several questions, including on shared diplomatic agenda items, the extent of civilian nuclear cooperation, and the nature of the American defense commitment to Saudi Arabia, remain unanswered.

In this episode, Brian sits down with Faisal Abbas, editor-in-chief of Arab News. Abbas, who reported on Saudi Crown Prince Mohammed bin Salman’s November 18 visit to the White House, unpacks his impressions from the visit and the opportunities it presents for US-Saudi relations. The conversation also explores the Kingdom’s transformation over the past decade, its relationships with key partners including the United States, and Abbas’s recommendations for deepening the US-Saudi partnership going forward.