World
The Middle East after Gaza
Updated 3h ago
2/5
The Gaza war has accelerated a fundamental realignment of Middle Eastern power, shifting influence from traditional centers like Egypt and Syria towards the Gulf states, while simultaneously forcing regional and European powers to negotiate a new, post-conflict security architecture for critical chokepoints and alliances.
Pentagon records reveal a $35.7 billion war cost and Navy salary budget reallocation, a new fiscal data point on the US Gulf posture.
State of play
Hormuz Chokepoint
Commodity transits through Hormuz rose to 10 on 27 August, up from five the prior day. Iran and Oman agreed to share strait revenue, but Tehran conditions full normalisation on US sanctions relief, an end to the port blockade, and compliance with a June memorandum. Oil prices extended losses on corridor hopes.
Sanctions and Mediation
The rial hit 2.02 million per dollar on 27 August as Washington deployed what it calls the toughest sanctions ever, targeting oil, banking, shipping, digital assets and gold. Tehran bets Washington will stop short of fully enforcing secondary sanctions on China and India. Qatar's PM plans a Tehran visit; Pakistan has dispatched a delegation.
US Operations Cost
Pentagon records show the US Navy redirected personnel and maintenance funds to sustain Middle East operations as the financial toll reaches $35.7 billion, reflecting the cost of the naval blockade and interdiction campaign around Hormuz.
Ceasefire and Regional Tracks
Israeli strikes in Gaza on 27 August underscore that violence persists despite ceasefire talks. Egypt, Qatar and Turkey condemned continued strikes as stalling phase two. Saudi-Israel normalisation stays conditional on Palestinian statehood. France and Saudi Arabia aligned on a Gaza framework in Paris on 25 August.
Key events
Full chronicle806
This week
- Pentagon records show US Navy redirected salary budget as Middle East war costs hit $35.7 billion
- Rial fell to 2.02 million per dollar on 27 August as markets weighed new US sanctions
- Hormuz commodity transits rose to 10 on 27 August, up from five the prior day
- Washington announced what it calls the toughest sanctions in history, targeting Iranian oil, banking and shipping