Dramatic shifts in the geopolitical landscape have placed Syria and Lebanon at a crossroads. As regional and international actors recalibrate their engagement in the Levant, the dynamics of peacebuilding and state recovery are shifting rapidly. Gulf countries, particularly Saudi Arabia and Qatar, are emerging as key players in war-torn Syria’s reconstruction, moving from proxy politics toward modes of influence driven by development.

On July 2, 2025, Iranian President Masoud Pezeshkian formally enacted a law suspending Iran’s cooperation with the International Atomic Energy Agency (IAEA). The move, approved unanimously by Iran’s parliament and endorsed by the Guardian Council, effectively halted inspections and reporting on Iran’s nuclear program by the agency “until the security of the nuclear facilities is guaranteed.” The legislation marks the most significant shift in Iran’s nuclear posture since the country’s accession to the Non-Proliferation Treaty (NPT) in 1970.

As the Arab Gulf states transition away from reliance on hydrocarbons and seek to diversify their economies, governments are fostering industries that complement the oil sector, like mid- and downstream industries, logistics and increasingly, sectors less related to hydrocarbons, like tourism and finance. This pivot is underpinned by a digital transformation.