Analysis

President Trump’s family businesses are once again in the spotlight as a new financial disclosure showed they earned $2 billion in income in 2025 — a dramatic increase on the year before, with much of it coming from Gulf entities, raising emoluments concerns. Mounting perceptions of corruption, combined with unresolved crises in Iran and Israel-Palestine, are eroding trust among key partners in the Middle East. With the 2026 midterms approaching, these entanglements could represent a major political vulnerability and further undermine America’s already-strained standing in the region.

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.

The US administration appears to have great expectations for Iraq’s new prime minister, Ali Falah al-Zaidi. But the expectations need to be tempered.

The 2026 Iran war has made Lebanon a core Gulf security concern, and Saudi Arabia, the UAE, and Qatar now have a narrow opportunity to curb Hizballah’s influence by leading reconstruction, strengthening Lebanese state institutions, and tying economic re-engagement to reform.

The US-Iran standoff over the Strait of Hormuz — disruptive to global trade and energy flows, and devastating for debt-burdened economies — has handed Pakistan an unexpected geoeconomic opportunity, one that may persist even if the framework agreement announced on June 14 results in a lasting peace and permanent reopening of the strait. But seizing it will have interlocking consequences for Islamabad’s ties with Tehran, Washington, and the Gulf states.

As the US and Iran move to reopen the Strait of Hormuz, the war’s real lesson lies in how Gulf states rapidly adapted — building pipelines, ports, and rail to bypass the chokepoint. Washington should seize this momentum, pursuing a “long game” of regional connectivity that serves shared security and economic interests.

ISIS appears to have collapsed in Syria in the wake of the SDF’s military defeat and subsequent integration, followed by the withdrawal of US troops. To the extent that the US prioritizes the group’s enduring defeat in the country, a relationship centered in Damascus is the best way to achieve it.