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In case the gyrations in global markets have you confused, here’s an updated Middle Eastern primer that will make you feel better:
1) The United States invasion of Iraq in 2003 brought the Shiite majority to power, so advancing the interests of Shiite Iran, America’s enemy. It ousted the Sunnis, upsetting the Sunni-Shiite balance in the Middle East. This infuriated Sunni Saudi Arabia, America’s ally, in theory.
2) The wealthy Saudi royal family underwrites a conservative Wahhabi Islam whose teachings are fiercely anti-American (don’t ask about the Saudi-American alliance). The Saudis have backed Sunni Islamists in war-ravaged Syria against the country’s Iranian-backed despot, Bashar al-Assad, who is from the quasi-Shiite Alawite sect. This maneuver backfired. A barbaric, tech-savvy, knife-wielding Sunni group calling itself Islamic State swept across Syria and Iraq, beheading and raping and destroying great treasures in pursuit of a medieval caliphate that would stretch across territory including modern-day Saudi Arabia. Talk about unintended consequences! Meanwhile the Saudis have bankrolled the destruction of Sunni Islamists in Egypt. This other bad sort of Sunni extremist, known as the Muslim Brotherhood, committed the ultimate lèse-majesté of believing in the ballot box as a source of authority.
3) Sunni-Shiite tensions have become regional. Saudi Arabia and other gulf monarchies are now so convinced that the United States is pro-Shiite (read pro-Iran!), and so persuaded of Iran’s anti-Sunni imperial designs, that they have embarked on a bombing campaign in — you guessed it! — Yemen. The purported aim is to stop the Houthis, seen in Riyadh as Iranian proxies.
4) In the aftermath of the Arab Spring (see below) the main functioning, stable states in the Middle East are non-Arab: Israel, Turkey and Iran. Israel has been in a stop-go war with Arabs since 1948, but is most exercised about Iran, which is not Arab, not Sunni, not on its border and not nuclear armed (see below).
5) The old Middle Eastern order is in tatters. Post-Ottoman states that were not nations, with century-old borders drawn up by Europeans, have split along sectarian lines and made nonsense of those borders. A metastasizing jihadi ideology driven by hatred of Western modernity, colonialism and perceived decadence has proved of unquenchable appeal. An independent Kurdistan, omitted from the post-Ottoman order, is now pretty close to realization. Cocktail-party nugget: Kurds and Israelis are tight.
6) The Obama administration called Syria’s Assad toast without having the means to turn him into toast. This was a huge blunder. A void ensued. Nobody loves a void like a jihadi. Enter Islamic State. America is now in a half-war with Islamic State. Half-war is like half-pregnancy: an illusory impossibility. America is still casting around for palatable nonfundamentalist Syrian opposition groups — a fool’s errand. Syria is gone, baby, gone.
7) Saudi views are increasingly identical to Israeli views (don’t sweat the details), especially on Iran. Wahhabi Islam, however, views Zionism as its implacable enemy. Hence identity of view does not translate into diplomatic rapprochement.
8) The Middle East has a longstanding cottage industry called the peace process. Palestinians are represented by the Palestinian Authority, an authority that has no authority over Palestinians in Gaza, no democratic legitimacy, no obvious claim to represent anything but itself, and no determination to change the status quo. Israel has a right-wing government with no interest in peace and every interest in quashing the very notion of Palestinian statehood — even of Palestinians themselves! The status quo suits Israel, although it involves intermittent small wars.
9) Israel has a nuclear deterrent. The United States and Israel have agreed never to talk about the Jewish state’s alleged nuclear weapons (again, don’t ask).
10) Several despots were swept out in the Arab Spring in 2011. But instead of bringing empowerment and agency through new forms of citizenship, the revolutions folded into sectarianism. Sectarianism means favoring your own and brutalizing the rest (see Egypt, Syria, Iraq, Yemen, etc.).
11) Iran is a theocracy split between hard-liners and reformists. The United States, China, Russia, Britain, France and Germany have reached a nuclear accord with Iran. It has stopped Iran’s nuclear program in its tracks. It is, on balance, the most effective way to keep Iran from a bomb. Still, every Republican member of Congress opposes the deal. They believe the White House, China, Russia, Britain, France and Germany are all deluded and they know better! Yep, they do. Plunging oil prices and America’s energy revolution have opened new strategic possibilities in the Middle East. The nuclear deal, too, could in time open new avenues for America to pursue its Middle Eastern interests. A region of recast alliances is anathema to status quo powers like Israel and the Sunni monarchies.
12) Got it? If not, don’t worry. Be Zen. There’s only so much anyone can worry about. Focus on China for now. My guess is the Middle East (unlike a large chunk of your portfolio) will still be around tomorrow.