After the shock: Diverging paths in the Middle East

The repercussions of these policies were not confined to Iran’s domestic sphere, but extended to the entire region, where regional economic growth excluding Iran declined from 4 percent in 2025 to a projected 1.8 percent in 2026, according to the World Bank report, with sharp contractions in some countries such as Iraq at minus 8.6 percent, Kuwait at minus 6.4 percent, and Qatar at minus 5.7 percent. The picture becomes clear here. This decline was nothing but a direct result of an approach based on escalation rather than development by Iran’s ruling clerical system.