Iran

The United States and Iran are engaged in an ongoing military conflict that is reshaping regional geopolitics and global markets. The war has prompted significant shifts in U.S. strategic priorities, drawing resources and attention away from other theaters such as Asia. Oil prices have risen substantially as a consequence of the conflict, and broader economic effects are being felt globally, including impacts on borrowing costs for major economies.

Peace negotiations between the U.S. and Iran have stalled, with a 60-day deadline for a deal having expired without agreement. The U.S. has indicated limited interest in terms Iran finds acceptable. The conflict has involved strikes on neighboring countries including the UAE, and has generated diplomatic tensions with other regional actors. U.S. military operations in the region have faced challenges, while Iran has conducted cyber operations against American interests. Concerns about stability in critical waterways such as the Strait of Hormuz have prompted warnings and unusual territorial claims, and the broader conflict has disrupted normal activities and commerce across the Middle East.