Middle Eastern economy

Egypt continues to play an active role in regional affairs, including the Aqaba emergency meeting on the Palestinian situation (February 26) and the ongoing effort to prevent escalation in Gaza. At the same time, Cairo is in the middle of a significant financial crisis. The effects of the war in Ukraine – specifically, grain shortages – brought the Egyptian pound to more than 30 to the dollar, up from 20 in November and 15 in early 2022, facilitated by deliberate government action in response to demands by the IMF. Inflation still soars, and so does youth unemployment. All this

The Biden administration's significant contribution to the Iranian economy is due to the failure to enforce the sanctions as rigidly as it was during the Trump era. For example, Iran increased its oil exports during the Biden era and increased foreign trade volume.

A New Middle East

A new Middle East

Changing Israel's relationship with Arab countries is vital for its regional legitimacy, but it is also in the best interests of the Arab world. Sunni Arab countries want relations with Israel to create a safer region and better tools to deal with the complex reality they face after the "Arab Spring," in the face of Iranian aggression and American hesitancy.

A clear Turkish rationale for better relations with Israel is to weaken the strategic partnership between Jerusalem, Greece, and Cyprus and get access to Israel’s natural gas.

Could Lebanon’s first negotiations with Israel in decades lead to normalization?
Prof. Efraim Inbar: The talks are a Lebanese development, relating to the economic and political crisis within Lebanon, and do not augur a broader peace relationship.

Egypt, Iraq, and Jordan seek to develop a regional bloc in the geographical center of the Arab world. But all three countries are poor and dependent in for economic largesse on more wealthy partners, so their regional aspirations and strategies will necessarily be limited.

The Trump administration has realized that in order to wound Hezbollah on a profound level the organization must be disjoined from the Lebanese economy, with an emphasis on the country's banking system.

Under the pretext of separation between regime and people, Iran seeks $5 billion in IMF emergency funding to fight COVID-19. This would significantly undermine the pressure on Iran being applied by US sanctions, and therefore the loan should be denied.