Middle East war reshapes regional system 

Analysts say the war in the Middle East is reshaping the regional system, with southern Syria turning into a key arena and trust between the parties declining. Reports also note that wars are “redistributing wealth geographically” in ways that benefit the U.S. economy, amid weakening Iranian deterrence, rising direct confrontations, and changing rules of politics and security in the region.

Middle East war reshapes regional system 
23 March, 2026   10:56
NEWSDESK 

Media outlets this morning covered developments in the ongoing war, highlighting its military, political, and economic dimensions, as confrontation escalates between the United States and Israel on one side and Iran on the other, alongside a broader reconfiguration of regional balances and rules of engagement.

Southern Syria inside the conflict

Lebanon’s An-Nahar newspaper said that “the recent Israeli strikes in southern Syria appear less linked to a local incident and more connected to resetting the rules of this track,” noting that southern Syria has once again become a central arena in regional arrangements.

The newspaper explained that the strikes come despite the existence of a coordination track between the interim government and Tel Aviv, stressing that “Syrian–Israeli relations have seen a qualitative shift with the creation of a joint coordination mechanism,” yet field developments have shown the fragility of this understanding.

It added that Israeli messages go beyond the battlefield, reflecting “limits of trust in the authority in Damascus,” and confirming that any Syrian move will remain subject to red lines imposed by Tel Aviv, at a time when Syria is turning into part of the management of the regional conflict, not merely a field affected by it.

Modern wars redistribute geography

For its part, Asharq Al-Awsat addressed the economic dimension of the war, stating that “modern wars do not create new wealth as much as they redistribute it geographically,” which explains the U.S. economy’s gains from the escalation.

The paper noted that the policies of the U.S. President Donald Trump, based on attracting investments, found in the war “a forced stimulus for capital movement,” as funds move toward more stable markets, foremost among them the United States.

It added that rising risks in conflict zones have increased operating, transport, and insurance costs, making other economies less attractive, while American companies, especially in the energy sector, benefit from higher prices and financial inflows.

Reshaping the regional order

In the same context, Asharq Al-Awsat also said that the war with Iran “is no longer merely a military confrontation, but an entry point to reshaping the regional order,” pointing to a series of major strategic consequences.

Among the most notable, the paper said, are “the decline in the effectiveness of Iranian deterrence and the weakening of its regional proxy network,” along with a shift from proxy wars to direct confrontations between states.

It also pointed to the shrinking space for “grey diplomacy” and the growing difficulty of reaching quick settlements, while Gulf states move to strengthen their defense systems amid rising importance of energy security and maritime routes.

The paper concluded that the region is entering a prolonged transitional phase, where “the value of the state capable of protecting its borders is increasing,” amid deep transformations that may redraw the rules of politics and security for years to come.

A-H

ANHA