Wednesday, June 24, 2026

The Iran Deal Is a Countdown to Instability

By John Aziz

Wednesday, June 24, 2026

 

The U.S.-Iran memorandum of understanding—signed by President Donald Trump at the palace of Versailles—is supposed to stop hostilities between the two countries, reopen the Strait of Hormuz, and result in Iran’s commitment to never develop nuclear weapons. It’s a bargain made on an old hope that has enamored American diplomats and presidents alike for decades: that the Islamic Republic of Iran—the theocratic state where the leadership ritualistically chants “death to America”—can be coaxed, pressured, flattered, bribed, or frightened into becoming a normal state, with good relations with its neighbors.

 

It may be possible to believe that from thousands of miles away. Meanwhile, Iran’s neighbors have lived with the Islamic Republic. They know its leaders, past and present, far more intimately than American policymakers do. They are the ones living under threat from Iranian ballistic missiles and drones. They are the ones living with Iranian-backed militias on their borders: Hezbollah in Lebanon, the Houthis in Yemen, Shiite militias in Iraq, and Hamas in Gaza.

 

During the war—rather than solely firing on those with whom it was at war—Iran fired repeatedly on multiple other countries around it, including targeting civilian infrastructure in those countries. Saudi Arabia intercepted Iranian missiles and drones. So did the United Arab Emirates and Jordan. Iranian missiles and drones were launched toward Qatar, and Qatari air defenses intercepted attacks. The war also threatened Qatar’s gas economy. Iranian missiles damaged Ras Laffan, the center of Qatar’s natural gas industry. Missile and drone attacks struck Kuwait International Airport, killing one person, injuring dozens, damaging a terminal, and forcing flights to be suspended or diverted.

 

Just months after these nations found themselves having to fend off Iranian aggression, their reaction to the 14-point memorandum has been mixed.

 

For Saudi Arabia, the war exposed the danger that Iran could drag the kingdom’s economy into a crisis it did not make itself. Riyadh has spent years trying to make the country less dependent on energy exports. It has attempted this by building new industries, attracting foreign capital, expanding tourism, hosting high-profile international events like boxing matches, creating private-sector jobs, and liberalizing restrictive social norms in the country, including allowing women to drive.

 

This transformation requires confidence. Investors have to believe that Saudi Arabia is stable. Tourists have to believe that the country is safe to visit—otherwise they won’t show up. Companies have to believe that their staff, buildings, supply chains, data centers, and other infrastructure will not be caught in a regional war.

 

The war with Iran threatened Saudi modernization even without Iran needing to fire a missile directly at Riyadh. When the Strait of Hormuz is disrupted, the Gulf region looks unstable. When shipping lanes are threatened, insurance costs rise, and investors start pricing in geopolitical risk. When Iran shakes the region, it reminds international investors that Saudi Arabia still sits inside a dangerous neighborhood.

 

That is why Saudi support for the MOU will be careful and conditional. Riyadh welcomed the agreement, but Reuters later reported that there was deep unease among Gulf allies about the deal’s failure to limit Iran’s ballistic missiles and the possibility that Tehran could gain leverage over security arrangements around the Strait of Hormuz. The kingdom stressed that the deal should lead to a permanent settlement that takes into account the “security interests of countries in the region.”

 

In other words, the Saudis want strict verification of and limits on Iran’s nuclear work, along with assurances that Tehran cannot use the same pattern of behavior again: threaten energy flows out of the strait, extract relief from its neighbors, and rebuild its military capabilities.

 

For the UAE, the war was a direct challenge to the country’s whole commercial model. The Emirati government—similar to the Saudis—wants the world to believe business can flow through the UAE safely and predictably. Disruption to the Strait of Hormuz attacks that promise at its root. Every tanker delay, shipping warning, insurance spike, drone incident, and rumor of escalation makes the UAE look less like an insulated hub for trade and more like a risky state trapped inside Iran’s crisis radius. The UAE welcomed the MOU. Its leadership is calling for an immediate halt to hostilities and freedom of navigation through the Strait of Hormuz.

 

Jordan also hailed the ceasefire as a positive step toward “regional stability” and “lasting calm.” But lasting calm for Amman means more than a pause between Washington and Tehran. Jordan shares borders with Iraq, Syria, Israel, the West Bank, and Saudi Arabia. When Iran pushes weapons through Syria, when Iranian-backed militias operate in Iraq, when Hezbollah escalates hostilities with Israel from Lebanon, and when Hamas or the Palestinian Islamic Jihad act, Jordan feels it. Missiles passing through Jordanian airspace is one version of the problem. Weapons smuggling through Syria is another. Drug trafficking, refugee pressure, and unrest related to the Palestinian issue are others.

 

For Qatar, the war has been a test of its diplomatic credibility. Doha helped sustain talks to end the fighting between the U.S. and Iran and emerged as one of the few actors able to speak to both sides.

 

The Qataris’ own statement on the MOU called it an important step toward “enhancing prospects for sustainable peace and economic growth at both the regional and international levels”. Qatar also praised Washington and Tehran for their commitment to resolving differences through negotiations and peaceful means.

 

Because it shares the world’s largest natural gas field with Iran, Qatar also had the strongest material reason to want this war brought under control quickly. A wider conflict involving Iranian energy infrastructure, the strait, or the Gulf’s shipping lanes would threaten Qatar’s core national interest, so Doha is happy. The deal, more than anything else, preserves Qatar’s role as mediator.

 

The MOU is exactly the kind of outcome Qatar’s foreign policy is designed to produce: not the defeat of Iran, and not the dismantling of Iran’s regional networks, but the containment of escalation through a process in which Qatar’s involvement remains necessary. That is why Doha can sound much happier than its neighbors.

 

For Saudi Arabia, the UAE, and Jordan, the central question is whether any eventual agreement negotiated with the U.S. will restrain Iran. For Qatar, the immediate victory is that the United States remains dependent on Qatari mediation, and Doha’s balancing act survives another crisis.

 

But the real danger of the MOU is that it sends a message—both to Iran and to other bad actors in the region—that blackmail and terrorism work.

 

Iran fired across the region. It threatened the world’s energy supply. It hit or endangered countries that had nothing to do with the conflict, other than their proximity to it. It attacked airports, tankers, gas fields, refineries, and American military bases. Then it wore Donald Trump down until it received promises of more than $300 billion in private investment in the Islamic Republic, ostensibly from its neighboring countries.

 

The Trump administration wants to call this realism and de-escalation. But more realistically, what the Islamic Republic is getting is more time to prepare for the next round of regional destabilization. And time is what the Islamic Republic needs most.

 

Time to repair air defenses. Time to rebuild command structures. Time to replenish Hezbollah, the Houthis, Iraqi militias, Hamas, and the Palestinian Islamic Jihad. Time to reopen smuggling routes through Syria and Iraq. Time to rebuild missile stocks. Time, once again, to surreptitiously try to build a nuclear weapon.

 

Can Iran still threaten the Strait of Hormuz whenever it needs leverage? Can it still fire missiles and drones at Gulf states? Can it still arm militias on Arab borders? Can it still use Lebanon, Syria, Iraq, Yemen, and Gaza as pressure points? Can it still extract concessions by making the region unsafe?

 

If the answer is yes, then the MOU, and any more seemingly permanent agreement that may result from subsequent negotiations, amount to simply kicking the can down the road. It’s allowing a regime that is ideologically hostile to America and the West more room to cause more trouble, sooner or later.

 

The Islamic regime in Iran is not a normal government representing a normal national interest. It is an authoritarian apparatus that survives by coercing its own society. In 2025 and 2026, as Iranians protested economic collapse, corruption, and political repression, the regime answered with mass arrests, mass killings, internet shutdowns, secret detentions, and show trials of dissidents.

 

Trump promised that he would bring help to the Iranian protesters. But if the Iranian regime holds onto power and gets a chance to consolidate its grip on the nation, Trump has very much fallen short of what he claimed he would do.

 

What’s the alternative to giving in to the Iranian regime’s blackmail? Tell the Iranians to kick rocks, and engineer a way around the strait’s strategic vulnerability.

 

The United States, Europe, Japan, India, South Korea, and the Gulf states should treat dependence on the strait as a strategic vulnerability to be engineered away. That means a massive expansion of pipelines from the Persian Gulf to the Red Sea, the Arabian Sea, and the Mediterranean. It means more petroleum export terminals outside the Strait of Hormuz; more storage in Oman, the UAE, Saudi Arabia, Egypt, and the eastern Mediterranean; and more liquefied natural gas capacity that does not require Qatari or Emirati cargoes to pass under Iran’s guard. It also means long-term contracts that reward producers who can deliver energy without entering Hormuz.

 

And it requires Iran’s neighbors to build the military architecture to protect the transition: permanent mine-clearing forces, anti-drone coverage, missile defense, protected convoy lanes, and automatic penalties on Iran for every attempt to threaten shipping. The goal should be blunt: make the Strait of Hormuz less important every year until Tehran can no longer hold the world economy hostage from its shoreline. If Iran wants to be a normal neighbor, it can trade like one. Until then, the world should build as if the strait is already compromised.

 

That is the fault line under the MOU. Everyone wants the war to stop. Everyone wants the strait to reopen. But there are two ways that can play out. One is that the region can live with the Islamic Republic so long as the situation is managed and mediated. The other is that every payment teaches Iran that it is winning and that it can win more by escalating again, by building proxy militias across the region that launch regional wars, as Hamas did on October 7, 2023.

 

Washington may celebrate that as diplomacy. To many in the Gulf and the Levant, it looks more like a countdown to destruction.

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