Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed al-Nahyan receives Saudi Crown Prince Mohammed bin Salman at the Presidential Airport in Abu Dhabi, United Arab Emirates November 27, 2019
A recent flurry of high-level meetings across Central Asia and the Middle East signals a quiet but marked shift: Iran and Russia are increasingly sidelined in the region’s political and economic realignments in favor of Arab states.
Once dominant mediators in the Armenia-Azerbaijan conflict, both were notably absent as the United Arab Emirates hosted direct talks between Armenian and Azerbaijani leaders late last week.
The meeting—described as positive by both sides—was the first time the two met face-to-face without intermediaries, according to Azerbaijani lawmaker Arzu Naghiyev.
Baku has long sought a way to connect the two territories of Azerbaijan separated by a tract of Armenian land. An existing plan for a 'corridor' is backed by Ankara but categorically rejected by Yerevan.
“Azerbaijan’s position on opening the Zangezur corridor to connect with Nakhchivan and Turkey is unequivocal,” Naghiyev told Iran International. “But the positions of Russia, Iran and others remain unclear.”
Tehran had previously threatened military action to prevent the corridor’s creation. But today, it appears unable to influence the outcome.
Tensions between Baku and Moscow have also escalated following the deaths of several Azerbaijani citizens in Russian custody.
In response, Azerbaijan shut down the Russian state-run Sputnik news bureau in Baku and arrested several of its staff. Meanwhile, Armenia’s pivot toward the West has further strained ties with Moscow.
Energy diplomacy
On July 4, the Nagorno-Karabakh region hosted an Economic Cooperation Organization (ECO) summit attended by leaders from Central Asia, Pakistan, Iran, and Turkey.
Russian officials were frustrated by Iranian President Masoud Pezeshkian’s participation, according to Israel’s Channel 12, especially as Azerbaijan was arresting Russian nationals.
Moscow made no public objection when Kazakhstan and Azerbaijan held joint drone drills days later.
Baku also hosted the head of Syria’s interim government last week, and reports suggest Israeli and Syrian officials held indirect discussions during the visit.
This followed Azerbaijan’s state oil company Socar acquiring a 10% stake in Israel’s Tamar gas field.
During the ECO summit, Turkish President Recep Tayyip Erdogan revealed Azerbaijan’s interest in exporting gas to Syria. A memorandum was signed on July 12 during the Syrian delegation’s visit to Baku.
Qatar has already begun supplying gas to Syria via Jordan, while Saudi Arabia and the United Arab Emirates are backing reconstruction efforts in opposition-held areas—bypassing the Assad regime and its traditional backers, Iran and Russia.
UAE leads the charge
Among Persian Gulf states, the UAE has emerged as the most active in regional diplomacy.
On July 13, Erdogan held a call with UAE President Sheikh Mohammed bin Zayed Al Nahyan, discussing the Kurdistan Workers Party (PKK) disarmament, the Armenia-Azerbaijan talks, and broader regional initiatives.
Trade reflects this deepening partnership: Turkish exports to the UAE surged 65% in the first half of 2025—the fastest growth among Turkey’s trade partners. Exports to Syria rose 46% in the same period.
Direct investment from Persian Gulf states abroad has jumped 50% since 2022, with 90% flowing to Central Asia, according to the Eurasian Development Bank.
Emirati firms manage all of Turkmenistan’s Caspian Sea oil production and own 30% of Azerbaijan’s Absheron gas field—the second-largest in the Caspian.
The UAE has invested more than $12 billion in Central Asia, with Saudi Arabia and Qatar accounting for almost $4 billion.
Arab states are stepping up across the region, increasingly appears to be at the expense of Iran and Russia.
Israel's police announced on Thursday it had arrested an Israeli soldier they say was in contact with Iranian operatives and took money in exchange for information.
“The investigation's findings revealed that the soldier knowingly maintained contact with Iranian elements and, in this context, carried out tasks for them, including transferring a video of interceptions and photographs of missile impacts and strikes in Israel," the police said in a statement.
"It should be noted that the information did not come to him by virtue of his military role,” it added.
The arrest comes on the back of a new ad campaign by the Israeli government warning citizens against spying for Iran.
Israeli authorities say they have uncovered more than 25 cases of Iranian recruitment over the past year, with more than 35 people indicted on serious security charges.
“The campaign carries significant national importance, especially in the aftermath of (the war with Iran), after which Iranian efforts to recruit operatives and execute missions inside Israel are expected to intensify,” said Israel's National Public Diplomacy Directorate, which along with domestic security service the Shin Bet, is behind the campaign.
“For 5,000 shekels, is it worth ruining your life or family?” reads one of the campaign's video adverts, referencing the reported amounts some individuals have received for passing information to Tehran.
Since the Gaza war, there has been a 400% surge in arrests related to alleged Iran-backed spy plots, according to the Israeli security services.
Iran’s top military commanders warned on Thursday that the armed forces are ready to resume fighting in the wake of the 12-day war with Israel amid a ceasefire brokered by the US.
“Our forces are fully prepared to resume combat from exactly where it stopped,” said Major General Mohammad Pakpour, commander-in-chief of the Islamic Revolutionary Guards Corps (IRGC), during a meeting in Tehran with Major General Amir Hatami, commander-in-chief of Iran’s army.
“The aggressors will not be spared,” he added. “The will and resolve of the Iranian people and our armed forces have triumphed. We stand together.”
Earlier in the day, a senior Iranian lawmaker also warned that Iran would respond to any future Israeli attack with a blow more severe than last month’s conflict.
“If the Zionist regime again makes the mistake of acting against the Islamic Republic, it will be hit even harder than it was in Operation True Promise 3,” Esmail Kowsari, a member of parliament’s national security and foreign policy committee, told reporters i Tehran.
Hatami said Iran would not wait for external threats to materialize. Last week, Israel's Prime Minister Benjamin Netanyahu warned that the war with Iran "is not over".
“The Zionist regime is a danger to regional and global peace,” Hatami said. “If given the opportunity, it would strike others in the region. We will not allow it.”
The commanders’ statements came amid Israel’s airstrikes on Damascus. Israel wants a demilitarised buffer zone in southern Syria.
US President Donald Trump expects Iran to return to nuclear negotiations, saying that diplomacy is in Tehran's best interest, according to the State Department Spokeswoman Tammy Bruce.
“I know that he expects them to begin to negotiate because that's in their best interest,” Bruce said in an interview with Fox News. “He has believed and continues to believe that diplomacy will work here."
Trump has warned that if Iran's nuclear program continues to pose a threat, he would "absolutely" consider more strikes, "without a question".
Three of Iran’s most resource-rich provinces, Khuzestan, Kerman and Hormozgan, recorded the highest levels of economic hardship in spring 2025, the news site Rokna reported Thursday, citing official statistics from the Iranian Statistics Center.
Khuzestan, home to much of Iran’s oil wealth, posted a misery index of 46.6, surpassing all other regions. The index combines unemployment and inflation to gauge pressure on livelihoods.
“While Khuzestan leans on oil, Kerman on copper and coal, and Hormozgan on its ports, the misery index in all three has reached unprecedented thresholds,” Rokna wrote.
The national index hit a 42.2 high in the same period, the report added.
The outlet warned that concurrent surges in joblessness and inflation were not only eroding consumer power, but “also endangering social and psychological stability.”
Rokna described Khuzestan’s situation as alarming. The province reported a 35.6% inflation rate and 11% unemployment in spring, despite commanding vast reserves of oil, gas, sugarcane, steel, surface water and port access.
“The water crisis and dust storms, widespread climate-driven migration, high unemployment among local populations, weak health and education infrastructure, and systemic corruption in resource allocation are among the main challenges facing Khuzestan,” the report said.
Since 2018, US sanctions have sharply curtailed Iran’s oil revenues and foreign trade, but recent developments—especially the coordinated US–Israel military strikes on nuclear sites and the threat of renewed UN snapback sanctions—have deepened the economic toll, paralyzing investor confidence and further isolating Iran from global markets.
Kerman, which ranked second with a misery index of 45.9, struggles with inflation in consumer goods, low wages in the mining sector, youth out-migration and limited rural access to credit, according to the report.
The province contains some of the country’s richest copper and mineral resources, as well as solar potential and arable land.
Hormozgan, in third place with a 45.8 index reading, continues to suffer despite its strategic coastal position in the Persian Gulf and role in maritime trade.
“Rising informal settlements, unregulated housing, inadequate education and high inflation” are key drivers of the hardship, Rokna wrote.
The publication cited official income data showing that disparities in Bandar Abbas, the provincial capital of Hormozgan, rank among the widest in Iran, particularly between the port’s core and surrounding settlements.
The economic struggles are also evident in the inadequate minimum wage for the current year, which is set at around 109 million rials (over $125). This amount covers only one third of the estimated cost of living for a typical household, calculated recently at about $600 based on the official data.
The rising costs of essentials such as food, housing, healthcare, and education have made it increasingly difficult for workers to make ends meet.
“The misery index is not just a number; it reflects unbalanced policies, unrealistic planning, and a social rupture in some of the country’s most resource-rich provinces,” Rokna wrote. “When regions endowed with wealth rank highest in misery, it means the distribution of resources and welfare has failed.”
The outlet warned about the intensification of “social dissatisfaction, migration, and even regional instability” in the country, and called on Masoud Pezeshkian’s government to prioritize changing the provincial governors.
Just one of the three nuclear facilities struck by the US in Iran last month has been destroyed, according to a report by NBC News citing current and former US officials.
The latest assessment, which showed that Fordow was set back as long as two years, was briefed to US lawmakers, Defense Department officials and allied countries in recent days.
NBC also reported that an initial plan presented to US President Donald Trump involved three more sites, but the operation would have taken weeks, leading him to scale back the scope due to the risk of casualties on both sides and the fact that it was at odds with his foreign policy to extract the US from conflicts abroad.
“We were willing to go all the way in our options, but the president did not want to,” one of the sources with knowledge of the plan said.
The US strikes targeted three enrichment sites in Iran, Fordow, Natanz and Isfahan.
Trump was quick to call the strikes “a spectacular military success” and said, “Iran’s key enrichment facilities have been completely and totally obliterated."
A graphic showing Iran's Fordow Fuel Enrichment Plant is seen in this photograph released by the Pentagon in Washington, June 26, 2025.
Israel has not ruled out further attacks on the two less damaged sites. Israeli Prime Minister Benjamin Netanyahu told Fox News last week that “it’s not over”.
Iran is the only non-nuclear weapon state enriching uranium to 60% U-235, a level that causes "serious concern," according to International Atomic Energy Agency (IAEA) Director General Rafael Mariano Grossi.
The IAEA has consistently maintained that there is no credible civilian use for uranium enriched to this level, which is a short technical step from weapons-grade 90% fissile material.
Iran has always said its nuclear program is purely for peaceful, civilian purposes.
Iranian Foreign Minister Abbas Araqchi said the strikes on the Fordow nuclear site caused severe damage.
A former top UN nuclear official told Eye for Iran podcast that a nuclear Iran is still possible despite US and Israeli strikes on key nuclear sites as the whereabouts of Tehran's near-weapons grade uranium remains unknown.
Around 400 kilograms—more than 900 pounds—of uranium enriched to 60% purity is unaccounted for and now with the International Atomic Energy Agency (IAEA) barred from the country, it is unsure if the location can ever be known.
Former Deputy Director General of the IAEA, Olli Heinonen, warned: “One should not relax because this material as such is enough for 10 nuclear weapons if it is enriched further to 90%. So in a big picture, yes, Mr Trump was correct, but it should have had this caveat that it's not yet over.”
Iranian President Masoud Pezeshkian was forced to complete part of a recent trip to Tabriz by taxi after the fuel in three official vehicles was found to be contaminated with water, leading to a mechanical failure, a senior government official said on Tuesday.
According to Mostafa Molavi, the president’s special inspector, all three vehicles carrying the president and his security convoy stalled near the city of Takestan in Qazvin province after refueling at a roadside gas station.
“The president and his security team set out by car for Tabriz. They refueled at a highway service station near the Rasht exit, and shortly after, all three vehicles broke down before reaching Takestan,” Moulavi said during a visit to Qazvin’s provincial headquarters earlier this week.
“Our investigation showed the station was distributing low-quality fuel mixed with water. It had a history of such violations,” he said.
Moulavi said the president chose not to involve local authorities and instead arranged a private taxi to complete his journey to Tabriz.“The president did not call the provincial governor’s office or request assistance. He simply took a taxi."
The National Iranian Oil Products Distribution Company (NIOPDC) confirmed that the gas station in question had previous complaints filed against it for fuel quality issues. However, no explanation was provided as to why the facility remained operational despite a history of infractions.
“This particular gas station had previous reports of similar problems,” Moulavi said.
Neither the president’s office nor the Ministry of Petroleum has commented publicly on the incident.
Fuel quality concerns
Fuel adulteration is a recurring issue in Iran, where motorists frequently complain of watered-down gasoline or manipulation of pump meters.
Videos circulated in recent years appear to show mismatches between fuel dispensed and prices charged, fueling widespread public distrust. Energy officials deny systemic shortcomings.
Former Oil Minister Bijan Zanganeh said in 2021 that up to 400 gas station operators each year faced legal action for offenses such as short-changing customers or mixing fuel types improperly.
However, industry insiders and watchdog reports point to broader issues, including the use of unauthorized chemical additives, underdeveloped refineries, and inconsistently enforced regulations.
According to a confidential oil ministry report obtained by Iran International in June, a growing mismatch between fuel production and demand, with the country relying on imports and petrochemical-derived gasoline to cover shortfalls.
Documents reviewed by Iran Open Data (IOD) show that Iran produced an average of 101 million liters of base gasoline per day in 2024, but raised the figure to 121 million liters by adding over 20 million liters of petrochemical additives—including the controversial methyl tert-butyl ether (MTBE), which is banned in many countries due to its toxicity.
MTBE is still used at Iran’s major refineries to boost octane ratings despite its environmental risks. Meanwhile, 80% of Iranian gasoline reportedly fails to meet international Euro-4 or Euro-5 standards.
Iran maintains one of the world’s lowest retail fuel prices thanks to heavy subsidies, but sanctions and aging infrastructure have made it increasingly difficult to sustain fuel quality and supply.