Middle East

The Middle East is currently a region of heightened tension, primarily due to the escalating conflict between the United States and Iran. The US, under President Trump, has been pursuing a strategy that combines military pressure, exemplified by the deployment of the USS Abraham Lincoln carrier strike group, with potential diplomatic engagement. Khamenei has warned that any attack on Iran would result in a regional war. The US has also approved significant arms sales to allies Israel and Saudi Arabia, further fueling regional militarization. The EU is moving to list Iran's Revolutionary Guard as a terrorist organization, increasing international pressure. China has halted trading in some commodity funds due to geopolitical tensions. While Trump claims to be open to speaking with Iran, the situation remains volatile, with the potential for miscalculation and escalation. The US views Israel as a key ally, as reflected in the 2026 National Defense Strategy. These factors combine to create a highly unstable environment in the Middle East.