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Prof. Doster outlines strategic limits of US and Israeli campaigns on Iran

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The strategic shifts within the Shanghai Cooperation Organisation (SCO), the historical balance governing Turkish-Russian relations, and the compounding geopolitical pressures confronting the US and Israeli leaderships in the Middle East formed the central themes of an extensive interview conducted by Dr Elif İlhamoğlu with Professor Dr Barış Doster, a senior academic in international relations, on the Harici digital broadcast network.

Dr İlhamoğlu opened the discussion by noting the leaders’ summit of the SCO convened in Bishkek, observing that the gathering had not received the attention it deserved in Western media despite the attendance of major global figures, including Turkish President Recep Tayyip Erdogan, Russian President Vladimir Putin, Chinese President Xi Jinping, and Indian Prime Minister Narendra Modi. Setting the context of the proceedings scheduled to run through 3 September, Dr İlhamoğlu reviewed the opening statements delivered by the leaders. President Erdogan characterised the SCO as an indispensable component of a multipolar order and issued a call for a more equitable international system. President Putin affirmed that Russia would exert every effort to eliminate elements that provoke armed conflict. President Xi urged the implementation of global initiatives, particularly promoting Chinese-led frameworks such as the Global Security Initiative to establish a just and peaceful order. Prime Minister Modi appealed for an end to endless wars. Dr İlhamoğlu then asked Prof. Doster how he evaluated the summit and what expectations should be drawn from it.

“The SCO proves its self-confidence by admitting rivals”

Prof. Doster stressed the institutional maturity and growing significance of the organisation, charting its historical trajectory:

“First of all, this summit is positive and important. If we date it from 1996, from the Shanghai Five, that makes 30 years. If we date it from its transformation into the Shanghai Cooperation Organisation in 2001, because initially it was five members—the Shanghai Five under the leadership of Russia and China, along with Kazakhstan, Kyrgyzstan, and Tajikistan—and in 2001 Uzbekistan joined, leading them to rename the Shanghai Five as a cooperation organisation, that makes 25 years from 2001. Now, whether one counts a quarter-century or 30 years from 1996, this represents an important process in terms of institutionalisation. It is an important period for taking stock, for self-criticism regarding what was achieved, how it was done, and what could not be achieved and why.”

Prof. Doster underscored the complex internal dynamics of the expanding bloc, which grew from five to six, then to eight with India and Pakistan, and subsequently to ten members with the accession of Iran and Belarus:

“Among the members, geography is expanding, but there are also differences in scale. The number of members is increasing—from five to six, from six to eight, from eight to ten. However, there are also differences in expectations, interests, threat perceptions, and priorities. Not all members enjoy sweet and harmonious relations. Among the members are states with serious mutual rivalries, such as India and Pakistan, who were admitted simultaneously. Then comes Iran, a state currently locked in struggle with the US and Israel in the Middle East.

“What does this show? It demonstrates that as the organisation institutionalises, expands, and diversifies its membership, and as large disparities in scale emerge among its members, it asserts a major ambition and seeks to demonstrate self-confidence by incorporating members that have serious disputes between them. The founders and leaders of the SCO, foremost among them Russia and China, are saying: ‘Look, who wanted India’s membership most? Russia. Who wanted Pakistan’s most? China.’ But by simultaneously admitting two nuclear-armed states that experience severe tensions, particularly the Kashmir dispute, and which have been on the verge of hot conflict, they are asserting an ambition. They are saying, ‘We can resolve the problems between these two members within the framework of the Shanghai spirit by admitting them on the exact same day; we have confidence in ourselves.’ They want to convey this message.”

Prof. Doster rejected characterisations equating the SCO to a Eurasian counterpart to NATO:

“Is this important? Naturally, it is important. Is it important for a multipolar world? Yes. Is it important for the evolution of an organisation? Yes. For instance, many of our colleagues argue that this organisation is a ‘Eurasian NATO’. I do not agree with that view. NATO is an organisation established in a different geography, under different regimes, within a different global context, and under the leadership of a different state. The Shanghai Cooperation Organisation, by contrast, is the product of another geography, other leading major powers, and a completely different international climate.

“One emerged at the onset of the Cold War; the other was established after the Cold War had ended. One is explicitly an Atlantic alliance, the North Atlantic alliance; the other is the Shanghai Cooperation, with a distinctly Eurasian weight. One is an organisation of regimes that prioritise liberal values and capitalism, such as democracy, human rights, freedom, and the rule of law, emerging from a context similar to the IMF, the World Bank, and the European Union. The other belongs to a climate and era marked by the dissolution of the Soviet Union, the collapse of the socialist and communist bloc, the relegation of the Warsaw Pact to history, and the downfall of the Eastern Bloc. Who is the founder and master of the former? The US. In the latter, Russia and China hold primacy.”

He observed that the perspectives of Moscow and Beijing within the SCO have converged over time:

“Initially, their expectations differed. While Russia viewed the Shanghai Five and subsequently the Shanghai Cooperation Organisation through the prism of separatism, extremism, crime, and border issues, China approached it more from a trade-oriented perspective. With new accessions, these perspectives multiplied, diversified, and began to harmonise. Today we see Russia moving closer to China on commercial matters, and China moving closer to Russia on security issues. The structure takes into account the concerns, threat definitions, priorities, and interests of new members. Its secretariat, its institutionalisation, and its dialogue partners have matured accordingly.”

Prof. Doster situated the SCO alongside the BRICS platform and the Belt and Road Initiative as drivers of a broader systemic shift:

“BRICS is a different structure—it is a platform rather than an institutional mechanism with a permanent secretariat in the conventional sense. If we add the Belt and Road Initiative, also spearheaded by China, this diversification is beneficial for the transition toward global multipolarity and for the Global South, or the Third World, a term I personally favour. As our great liberator and leader Gazi Mustafa Kemal Pasha, the great Ataturk, defined it, the proliferation and diversification of organisations that belong to, support, and empower oppressed nations is positive both for checking, restraining, and slowing imperialism, and for advancing multipolarity.

“This holds an added advantage for countries like Türkiye. For states defined as middle powers, as well as for smaller, less powerful nations, a multipolar system is beneficial because it expands their alternatives and strategic options.”

Dr İlhamoğlu noted the structural contrast between the two blocs, observing that if the US were removed from NATO, the alliance would face dissolution, whereas the SCO embeds multipolarity into its governance.

“NATO has operated as an instrument of US imperialism”

Prof. Doster elaborated on the structural divergences separating NATO and the SCO, reiterating his analytical critique:

“NATO has 32 members, while the Shanghai Cooperation Organisation has 10. Look at NATO’s structure when it was founded, and look at the geography across which it expanded after the collapse of the Soviet Union by rapidly absorbing former Soviet republics and former Warsaw Pact members. Are they the same? Certainly not. In the Black Sea, Türkiye joined NATO in 1952, followed later by Bulgaria and Romania. If they had the capacity, they would seek to include Ukraine and Georgia as well. The most recent two members are Sweden and Finland.

“Consider the geography of NATO’s expansion versus the geography of its founding. Look at its political economy, and examine what NATO signifies for the US arms industry. Then compare that to the founders of the Shanghai Cooperation Organisation and the states it incorporated during its expansion. There is an immense divide between them. Because of the historical context, the time frame, the domestic regimes of the member states, and their numbers, they cannot easily be compared.

“Alliances typically form around common denominators: liberal regimes sharing values like democracy, human rights, and the rule of law; shared threat perceptions; geographic proximity; and shared interests. When we look at NATO from its inception, including during the period following the September 11 terrorist attacks when its famous Article 5 was invoked, it has functioned according to the priorities of US imperialism and served as an instrument of aggression and occupation for US imperialism. Comparing NATO, founded in 1949 and now comprising 32 members, expanding despite assurances given to the Russians, with the Shanghai Cooperation Organisation shows that these structures are not comparable.”

Dr İlhamoğlu turned to bilateral diplomacy on the summit margins, highlighting the meeting between President Erdogan and President Putin. President Erdogan stated that Türkiye-Russia relations were far more advanced than ever, while President Putin described Türkiye as remaining one of Russia’s privileged partners in foreign policy and economics. Both leaders indicated that the Akkuyu Nuclear Power Plant project had reached its final stage and signalled potential new joint ventures. Dr İlhamoğlu asked Prof. Doster how he assessed bilateral ties, taking into account past tensions such as the S-400 dispute and recent developments in the Black Sea regarding attacks on Turkish commercial vessels.

“Ankara and Moscow know their ties must not be severed”

Prof. Doster framed Turkish-Russian relations within an enduring historical and institutional continuum:

“Whatever the political leaderships governing these countries or their political-economic preferences may be, relations between the two countries represent the ties of two great civilisations that are the heirs of empires, possess profound state traditions, and constitute two great nations. Whether Türkiye produces centre-right, centre-left, political Islamist, or nationalist traditions, and whether it is the era of Menderes, Demirel, Ozal, Erdogan, or Ecevit, Türkiye views the Soviet Union and its successor, Russia, through a historical lens. Moscow looks at Ankara through the exact same prism.

“The periods when bilateral relations peaked were the founding eras of both modern states. The Great Soviet Revolution, the October Revolution of 1917, overthrew the empire, bringing the Bolsheviks under Lenin to power. In Türkiye, under our great liberator Gazi Mustafa Kemal Pasha Ataturk, the National War of Independence took place, dismantling an empire as well. These two historical processes, which formed the subject of my doctoral dissertation, occurred concurrently through war and revolution following the dissolution of empires, and both possessed an anti-imperialist character, particularly against Britain. The Russians knew the Turks would not become communists, yet Lenin recognised Mustafa Kemal as a brilliant leader fighting the British and resolved to support him.”

He reviewed the long historical trajectory spanning the Ottoman and Romanov empires:

“Prior to that, two empires—the House of Osman and the Romanovs—fought, competed, and struggled. Over roughly the past century, the Russians changed their name three times and changed their regime three times: Tsarist Russia collapsed and was replaced through war and revolution by a communist regime under the Bolsheviks; the USSR collapsed in December 1991, leading to the Russian Federation with a semi-presidential system and a rapid transition to capitalism. Yet did this diminish the weight of the Russians on the world stage, their qualified human capital, their diplomatic ambition, or their historical pursuit of access to warm seas? It did not.

“The periods when our relations with Russia were strongest coincided with times when centrist political cadres governed Türkiye, such as the Demirel and Ozal eras. The Turkish construction sector carried out its successful African projects in Libya, while to the north it executed major projects across Russia, the Soviet Union, and Moscow. When this historical memory is kept in view, commercial relations, Russian tourism to Türkiye, our grain purchases—which President Erdogan also emphasised—and our defence acquisitions all fit within this perspective.”

Prof. Doster addressed acute diplomatic crises in recent years, noting how structural pragmatism prevailed:

“Under the Justice and Development Party, severe problems were experienced with Russia. We shot down their aircraft, which was a first in the history of a NATO member state. Subsequently, their ambassador was assassinated in Ankara, an incident that 300 years ago would have constituted a casus belli. Yet both states acted with great restraint.

“Naturally, there exists what we term a historical and balanced tension, a historical and balanced rivalry between them. They hold differing views on Central Asia, diverging positions on Chechnya, and disagreements over Ukraine—even as Türkiye relies on the Montreux Convention, one of the brilliant achievements of Gazi Mustafa Kemal Pasha. Disagreements persist regarding Crimea, over influence in the Caucasus, and President Putin has likely made a note of the S-400 issue.

“Nevertheless, no matter how strained relations become, both capitals understand that ties must not be broken or allowed to deteriorate into unmanageable phases. They value mutual friendship geographically, historically, politically, and economically. Russia is consistently one of Türkiye’s top three foreign trade partners, alongside Germany within the EU and China. We import grain, natural gas, and petroleum from Russia, and welcome large numbers of Russian tourists, while exporting fruits and vegetables to Russia and undertaking construction projects there.

“Taking all these factors together, Türkiye is a NATO member, and a loyal one, which Russia understands. However, Russia positions Türkiye in a distinct category. While they would not admit a NATO member to the SCO, they recognise Türkiye as a significant actor that experiences friction within NATO, and they position it accordingly.”

Dr İlhamoğlu turned to the intersection of ongoing armed conflicts and electoral politics. She pointed to the upcoming November midterm elections in the US amid the war involving Iran, where President Donald Trump has altered his rhetoric and actions to mitigate potential electoral damage. Similarly, in Israel, Prime Minister Benjamin Netanyahu faces domestic instability and risks losing partial US support, drawing criticism. Dr İlhamoğlu asked how leaders are managing the dynamic between warfare and election campaigns.

“Netanyahu cannot defeat Iran without US troops in combat”

Prof. Doster analysed the domestic political vulnerabilities confronting the US and Israeli leaderships:

“From the US perspective, oil prices driven by volatile conditions in the Strait of Hormuz represent a clear vulnerability for Trump. Having lived in the US, I know that ordinary citizens are not ideological in the way we are, but they care deeply about the price of fuel for their cars. Furthermore, the midterm elections take place in November. In US political science terminology, if a president loses, he becomes a lame duck for the remaining two years, a weak president. Therefore, ahead of November, Trump requires a foreign policy or military achievement that can be presented effectively at home and abroad.

“However, such an outcome is not achievable regarding Iran. The US has not defeated Iran militarily. Despite rhetoric claiming Iran had two, three, or twenty-four hours left, events demonstrated otherwise. In fact, stockpiles of expensive missiles and rockets produced by the US defence industry have been depleted. Politically, no objective was secured; the regime was not changed, and the combat capability and resolve of the Iranian armed forces, the Revolutionary Guard, and other armed formations were not broken. On the contrary, the Iranian nation, including opponents of the regime, set domestic opposition aside to rally behind their state. Trump did not achieve his aims in Hormuz, and there is no indication that conditions will shift to his desired scale before November.”

Turning to Israel, Prof. Doster assessed the strategic limits of its military operations against Tehran:

“What has become evident is that even with complete US backing, Israel cannot defeat Iran on the battlefield if the US itself is not fighting directly. Israel received US funds, weapons, intelligence, foreign policy backing, financial support, munitions, artillery, missiles, and radar systems. Yet if US combat aircraft are not bombing Tehran, Israel cannot defeat Iran on the battlefield alone. Furthermore, Iran demonstrated that through the range, technology, and cost efficiency of its missiles and radar systems, it could carry out highly effective counter-strikes and penetrate Israel’s defensive domes.

“This constitutes Netanyahu’s vulnerability. During periods of war and armed conflict, security-driven policies typically gain traction among electorates as concerns over physical survival rise. Netanyahu argues that Arabs and Iran are hostile and claims the public must unite behind him. Yet he and his spouse face documented charges; he is being tried for genocide at international courts and faces severe domestic corruption allegations. He attempts to suppress these issues by claiming the country faces an existential threat.

“However, he cannot convince the Israeli public as easily as before. If his primary opponent were a liberal figure, Netanyahu might find it easier to persuade the electorate on security grounds. But his strongest opponent is a former Chief of General Staff. Netanyahu cannot credibly claim that a former Chief of General Staff is an overly peaceful figure sympathetic to Arabs or Iran. On matters of security, existential threats, and armed conflict, his rival possesses professional training and military expertise far exceeding Netanyahu’s.

“This places severe pressure on Netanyahu. Israeli voters sympathetic to hardline policies who perceive Netanyahu as ineffective look toward the former military chief. Open sources indicate significant losses for the Israeli military, depletion among reserve units, and severe psychological trauma among returning soldiers. When critics argue that Netanyahu has failed to wage the war effectively, they direct their support toward a former Chief of General Staff rather than leftist or Marxist candidates.”

Dr İlhamoğlu observed that following the inability to achieve a military breakthrough against Iran, US Treasury Secretary Scott Bessent had initially signalled the implementation of unprecedented sanctions targeting Iran and third-party facilitators, including Chinese banks. However, after extensive media buildup, no sweeping measures were enacted, with Bessent citing the risk of triggering a global economic crisis. Dr İlhamoğlu noted that analysts pointed to ongoing US-China negotiations and a projected reciprocal visit by President Xi Jinping to the US in late September as factors restraining Washington, and asked Prof. Doster for his appraisal.

“US tariff measures against China have acted like a boomerang”

Prof. Doster addressed the broader efficacy of international sanctions and the structural constraints limiting US leverage:

“Having studied the history of sanctions, one sees that sanctions have rarely achieved their stated objectives globally. Since the 1979 Iranian Islamic Revolution, Iran has faced continuous sanctions, blockades, and embargoes. Iran has suffered strain, economic exhaustion, brain drain, periods lacking basic goods, and technological impediments, but it has not surrendered. Sanctions are likewise imposed on North Korea and Cuba, yet none of these states have been brought to their knees. In certain instances, countries transform sanctions into national mobilisation, achieving domestic breakthroughs in targeted sectors and technology.

“Regarding diplomacy, Trump frequently refers to foreign leaders as personal friends—including the leader of North Korea, President Putin, President Erdogan, President Xi, Egyptian President Sisi, and Ahmad al-Sharaa. He is exceptionally generous with such characterisations.

“More importantly, Iran possesses strategic depth supported principally by two major powers: Russia and China. If secondary sanctions are attempted against this rear guard, they will face defiance. Furthermore, when trade tariffs on China were raised to levels between 15% and 165%, the measures ultimately rebounded against the US itself and its European allies, without hurting China to the degree Washington intended. In accordance with the principle of reciprocity, China responded by introducing proportional tariffs and export restrictions on rare earth elements and critical minerals.

“Having taught in Australia, where the term is widely used, I view this as a boomerang: it struck the US, damaged its European allies, and failed to inflict the intended damage on China. Attempting comprehensive sanctions against the world’s second-largest economy and one of your top three trading partners inevitably causes severe domestic blowback. Consequently, despite aggressive rhetoric and high initial demands, substantive follow-through did not materialise.”

Dr İlhamoğlu concluded by asking whether the US could sustain military operations under prevailing conditions, noting renewed strikes in the Strait of Hormuz, Iranian retaliatory strikes on US bases, Trump’s assertions of harsher retaliation, and reported institutional discord within the Pentagon between Defense Secretary Pete Hegseth, military commanders, and the resignation of Secretary of the Army Dan Driscoll.

“I do not expect sustained strikes against Iranian infrastructure”

Prof. Doster dismissed the prospect of an expanded, sustained US air campaign against Iranian territory:

“To be clear, I do not expect a sustained campaign resembling the 40-day intensive strikes where US and Israeli forces targeted the Iranian mainland, Tehran, nuclear sites, infrastructure, military facilities, and energy installations. Harassment-style strikes or isolated exchanges may occur, but an intensive, uninterrupted 40-day campaign mobilising large numbers of aircraft, missiles, and radar systems against major Iranian infrastructure is unlikely.

“I rule this out not only on military grounds, but also due to economic and financial constraints, alongside depleted US inventories. This assessment is shared by prominent analysts such as John Mearsheimer, an eminent political scientist at the University of Chicago, leading international relations scholar, former military officer, and the pioneer of offensive realism. Mearsheimer articulates these precise constraints. When I make these arguments, domestic critics often attach labels, calling me a nationalist, Kemalist, or Eurasianist. But these realities are documented by leading American realist scholars who understand these military and strategic balances thoroughly.”

Diplomacy

IMF warns global economy is nearing the limits of its resilience

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The International Monetary Fund (IMF) has warned that the global economy’s capacity to withstand fresh shocks is coming under strain.

Worldwide growth has exceeded expectations and maintained stability despite the war in the Middle East and surging oil prices.

However, some policymakers worry that dwindling energy reserves, rising debt burdens, and a growing reliance on the artificial intelligence boom will leave the world increasingly vulnerable.

In a blog post, IMF economic counsellor Silvana Tenreyro wrote: “Without strengthening supply capacity and rebuilding policy buffers, the global economy may soon test the limits of its resilience.”

Tenreyro added:

“While tech-related investments are an important advantage against the energy shock, they concentrate risks, making global growth excessively dependent on a small number of companies, sectors, and economies.”

The artificial intelligence (AI) boom has helped offset the economic fallout of the war.

Yet a sharp reversal could leave global GDP 1.1% below the IMF’s baseline forecast by 2028.

US GDP could take an even larger hit of 1.8%.

This scenario assumes that the productivity gains promised by AI fail to materialise, triggering a pullback in investment and a correction in financial markets.

Continued investment in artificial intelligence could also fuel inflation, leading to renewed interest rate increases.

Conversely, a stronger AI investment boom coupled with faster productivity gains could lift global GDP 0.6% above the baseline forecast by 2029.

The IMF largely maintained its global growth projections despite prolonged energy disruptions stemming from the Middle East war.

However, it now expects higher inflation both this year and next year.

The IMF projects global growth of 3.1% in 2026, unchanged from its April forecast, and anticipates 3.4% in 2027, representing a 0.2 percentage point upward revision.

The fund projects that the US economy will expand by 2.3% in both years, marking the fastest growth among G7 economies. The 2027 forecast was revised upwards by 0.2 percentage points.

Global inflation is expected to reach 4.7% in 2026 before easing to 4.1% in 2027.

Driven by the adverse impact of surging energy and food prices, both inflation projections were revised upwards compared with April.

The world had managed the energy shock partly by drawing down oil reserves and rerouting supply sources.

According to the IMF, global oil inventories are declining by approximately 2.7 million barrels per day, elevating the risk of a sharp price spike.

These projections provide the backdrop for global finance officials and central bankers gathering in Bangkok this week for the annual meetings of the IMF and the World Bank.

The IMF underestimated global growth projections for three consecutive years, raising questions over whether economies have become better at weathering shocks.

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SWP urges backing for Gulf trade routes bypassing Strait of Hormuz

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The German Institute for International and Security Affairs (SWP) in Berlin recommends paying closer attention to new transport corridors running from Persian Gulf countries to Europe.

According to a recent analysis by one of Germany’s most influential foreign policy think tanks, the de facto blockade of the Strait of Hormuz and the wars in the Middle East, along with the growing risks surrounding transit through the entrance to the Red Sea at Bab el-Mandeb, are currently prompting Gulf states to strongly back alternative route plans to Europe.

On the one hand, these plans include pipelines designed primarily to bypass the Strait of Hormuz or extend from the Middle East to Mediterranean ports in Syria and Türkiye.

On the other hand, the initiatives involve building transport corridors designed to facilitate the shipment of goods between the Arabian Peninsula and Europe via alternative routes such as Egypt, Syria, or Türkiye.

The author of the analysis, former SWP director and prominent Middle East expert Volker Perthes, argues that these projects should be supported because they would link the Middle East to Europe through infrastructure.

War-induced disruptions

Disruptions caused by war along the maritime routes off the Arabian Peninsula form the backdrop to the latest analysis on major geo-economic projects in the Near and Middle East, published on Monday by the Berlin-based SWP, which is funded by the Federal Chancellery.

The Strait of Hormuz, through which the vast majority of Arab states’ oil and natural gas exports reached world markets before the Iranian war began, is currently impassable in practice because of blockades imposed by both Iran and the US.

The Bab el-Mandeb Strait between Yemen and the Horn of Africa, through which much of the trade between Europe and Asia flows, is also currently at risk due to the war between Ansar Allah, Saudi Arabia, and its proxies in Yemen.

There is currently no sign that these disruptions will end. Furthermore, both straits will remain structurally highly vulnerable in the future, as ships passing through them can very easily be attacked by neighbouring states.

Pipeline plans to bypass Hormuz

As noted in the SWP’s latest analysis, a series of pipeline projects aimed at offering alternatives for oil exports via the Strait of Hormuz are currently under discussion or even under construction.

Iraq, for instance, is working to repair and recommission an old pipeline built in the early 1950s but destroyed during the 2003 invasion, which runs from the Kirkuk oilfields to the Syrian port city of Baniyas.

In addition, a pipeline is planned to run northwards from the oilfields near Basra in southern Iraq.

This line is also intended to extend as far as Baniyas, or alternatively to Ceyhan.

Saudi Arabia is considering expanding the East-West Pipeline from its production regions in the east to the Red Sea port city of Yanbu.

The United Arab Emirates is building a second oil pipeline in Fujairah, situated outside the Persian Gulf and thus beyond the Strait of Hormuz.

However, the SWP points out that pipelines and alternative loading ports remain vulnerable to attacks.

For that reason, these lines cannot replace the Strait of Hormuz; they can only generate additional options, or in other words, provide “greater redundancy”.

Special emphasis on IMEC by SWP

The SWP places particular emphasis on the India-Middle East-Europe Economic Corridor (IMEC), a major project launched in 2023 by India, Saudi Arabia, the United Arab Emirates, the EU, three European countries (Germany, France, and Italy), and the US.

The venture envisages the development of a comprehensive transport corridor spanning sea lanes, roads, railways, and pipelines of all kinds, stretching from India across the Arabian Peninsula to the Mediterranean coast of the Middle East, and from there to Europe.

The original plan was to extend the corridor to the port of Haifa. The US viewed this not only as an opportunity to establish an alternative to China’s New Silk Road, but also as a means of providing an “infrastructural foundation” for the Abraham Accords, both those already in effect and those pursued by Washington.

Since the outbreak of the Gaza War, however, including Haifa in the project appears unlikely.

Discussions are currently focused instead on building or expanding transport routes running from Saudi Arabia through Jordan to the Syrian coast, or across the Sinai Peninsula to Egypt’s Mediterranean ports.

The SWP concludes that any “network of infrastructure connections” is “more realistic” than a single mega transport corridor.

Significance of Syria and Türkiye for German think tank

As the SWP points out, other major geo-economic projects traverse Türkiye.

For instance, a transport corridor running north from the Al-Faw container port in southern Iraq and intended to reach Europe through Türkiye has been in the planning stages since 2024.

Known as the Iraq Development Road (IDR), the venture is slated to include railway, motorway, energy, and data connections. It is backed not only by Iraq and Türkiye, but also by the United Arab Emirates and Qatar, which seek to utilize the corridor to diversify their trade with Europe.

The Iraqi regions through which the corridor will pass remain a subject of dispute. Furthermore, the implementation of the project is thought to depend on the “resolution process” in Türkiye.

Alternative or complementary plans envision another corridor running from the Arabian Peninsula through Jordan and Syria to Europe.

This likewise encompasses a comprehensive transport corridor featuring railway, highway, and data connections.

This carries strategic implications: Syria under President Bashar al-Assad, which previously functioned as an east-west transport corridor stretching from Iran to Lebanon, would now be repurposed as a north-south corridor.

Excluding Iran from ‘corridors’ is core objective

According to the SWP, the Arab states’ interest in transport corridors will remain high even after the hoped-for conclusion of the war with Iran.

The Gulf countries’ “mistrust” towards Tehran will persist; moreover, they will not want to “rely” on the US over the long term to provide “naval escorts for oil or natural gas exports”.

Iran is also not expected to connect to the railway, highway, and data networks in question. Infrastructurally, Tehran is already leaning further towards Central Asia, Russia, and China.

Nevertheless, it is clear that all the transport corridors mentioned lead to Europe and are primarily “aimed” at establishing closer links with the European continent, which represents a major advantage for European countries.

On the European side, interest in pipeline plans is lower because “demand for fossil fuels is likely to decline”.

By contrast, railway and motorway networks and data connections are of particular interest for both economic and political reasons.

According to the SWP, these serve Europe’s geopolitical interests in establishing closer and more resilient connections with the Gulf region and the Indian Ocean.

In the view of the German think tank, “alternative… transport routes” created by bypassing Iran will in effect become the “geo-economic equivalent of missile defence”.

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EU and China reach preliminary deal to curb hybrid car imports

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The EU has reached a preliminary agreement with China to significantly reduce hybrid car shipments into the bloc.

The agreement follows an abrupt surge in hybrid car sales by Chinese brands across Europe, led by BYD.

This surge escalated trade tensions and piled pressure on European carmakers.

Following talks between EU Trade Commissioner Maros Šefčovič and his Chinese counterpart, an agreement was reached on Friday to significantly reduce hybrid car shipments to the EU.

European carmakers, under pressure from companies such as Chery, have been losing market share in China, where competitors develop new models more efficiently.

In Europe, appealing line-ups, including BYD’s Dolphin hatchback, offer robust electric vehicle technology at affordable prices.

This shift has forced carmakers such as Volkswagen to downsize workforces under broad cost-cutting drives.

Šefčovič stated that the agreement was the first of its kind and the result of “intense” negotiations conducted with China since June to reduce a daily trade deficit of 1.18 billion euros, which has caused mounting strain between the two economic powers.

Speaking at a press conference in Beijing on Friday, Šefčovič said the agreement “creates the possibility to reduce Chinese [hybrid vehicle] exports by more than half,” adding that this would lead to a reduction of “several million” rechargeable and battery-powered hybrid vehicles over the next four years.

“China agreed to reduce its exports without first entering a trade tension phase; this is happening for the first time,” the Commissioner said, referring to the standard investigations that must precede the introduction of protective measures under WTO trade rules.

Šefčovič said the Chinese recognised the rising political pressure across every member state in Europe, where “literally thousands of job losses” were risked due to an influx of cheap imports from China across multiple sectors, including chemicals and textiles.

Noting that EU leaders “clearly expected very rapid action” from the European Commission, and that the Chinese were aware of this, he stated:

“I am pleased to say that our Chinese partners appreciated this very strong political argument; therefore, we can reach a negotiated solution. This is not the end of the process. This is a very important first step, but only a first step.”

Earlier this week, senior EU officials announced that they would travel to Beijing to develop a pilot programme, which they termed a “proof of concept” with a single sector, hoping it could later be expanded to other areas under pressure from Chinese competition.

Šefčovič noted that he attached “great importance” to the negotiations because once a trade war begins, it is “very hard to stop.”

As part of the 16-point agreement, Beijing and Brussels will continue negotiations on automobiles, export restrictions on rare earth elements, and greater market access for EU food and beverages entering China.

China stated that both sides would adhere to “procedures on company price undertakings” for hybrid cars, implying that one way to cap sales could involve setting higher minimum prices for Chinese-origin cars sold in Europe.

A statement from the Chinese Ministry of Commerce noted that China was “willing to continue facilitating the approval of export licences for rare earth elements and permanent magnets destined for the EU.”

The statement also added that both sides “reaffirmed their commitments to handle differences appropriately within the framework of WTO rules, and to stabilise and balance bilateral trade and economic relations.”

In a statement issued today (12 October), the Chinese Ministry of Commerce stated that following “intensive consultations” between the two sides, the European Union’s new hybrid vehicle arrangement would allow export growth to continue, with an allocation for China that is no smaller than that of any other country.

The ministry added that this consensus “strongly protects the practical interests of Chinese enterprises, prevents an escalation of China-EU trade tensions, and provides a stable, predictable, and sustainable trade and investment environment for both sides.”

According to Chinese customs data, Chinese hybrid vehicle exports to the 27 EU member states tripled in the first half of this year to $7.5 billion, up from $2.5 billion in the same period a year earlier.

This figure is nearly nine times the $845 million in exports recorded across the whole of 2021.

Since the EU began applying additional tariffs on Chinese-origin electric vehicles in 2024, Chinese carmakers have increasingly turned to plug-in hybrid vehicles, which remain exempt from these additional duties.

Inadequate charging infrastructure in parts of Europe has also supported demand for plug-in hybrid vehicles, which are marketed on long range and high fuel efficiency.

According to Jefferies, SAIC, BYD, and Chery account for more than 90% of Chinese-origin hybrid vehicle sales volumes in the EU, with hybrid cars representing over half of these manufacturers’ European sales.

Support for the agreement also came from Renault. CEO Francois Provost argued that the European Union had reached an initial “important milestone” with the deal to slow the influx of hybrid vehicles from China, contributing to shaping the future of the European automotive industry.

“I had urged him to reach an agreement as soon as possible. Without an agreement, we would have faced a trade war with China, which would have been a ‘lose-lose’ situation for everyone,” Provost said.

Provost was among the business leaders who met Šefčovič ahead of this visit, which aimed to address widening EU trade imbalances.

Prior to talks with Chinese Commerce Minister Wang Wentao, France and Germany urged the EU to significantly broaden its retaliatory economic powers and investigate whether subsidised imports were damaging sectors such as chemicals and plastics.

In France, Renault already relies on several Chinese suppliers. Envision AESC assembles electric vehicle batteries for the bestselling R5 city car, as well as the R4 and Alpine A290 models, at a facility near Renault’s car assembly plant in Douai, northern France.

“We need Chinese companies to invest heavily in the European value chain, rather than merely setting up ‘screwdriver factories’,” Provost said.

Provost also called on the EU to move quickly on so-called “Made in Europe” rules, which could establish a local framework for Chinese players:

“If Europe does not take rapid decisions now, the collapse of the European automotive industry risks continuing. At least on the Chinese front, some progress has been made thanks to Commissioner Šefčovič.”

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