Kuwait

Investors continue to bet on Kuwait’s longer-term outlook, though stiff economic headwinds and geopolitical uncertainty remain on the horizon.

The war between the United States and Iran revealed the vulnerability of static U.S. bases, while also showcasing Gulf Arab states’ capacity – bolstered with U.S. hardware and training – to intercept most Iranian strikes on their own, raising new questions about U.S.-Gulf security partnerships.

Hitting the systems that keep Gulf populations supplied with water and power is a threshold Iran now appears willing to cross.

The outbreak of the Iran war has halted the deepening of the economic relationship between the United States and the Gulf countries. While likely temporary, it could take some time before the upward trajectory is restored.

Ports will be key focus areas of economic infrastructure buildout efforts as the region works to move beyond the Iran conflict.

A strong relationship with the GCC acts as a stabilizing force for an inherently fragile Iraqi state. But to maintain this, Iraq needs to pair sophisticated regional diplomacy with assertive control over the nonstate actors operating within its borders.

On June 8, AGSI convened its Petro Diplomacy conference for the 12th consecutive year.

Gulf capitals are facing immediate policy choices around how to restore order in a regional setting that is greatly changed – for the worse – as a result of the Iran war.