Tensions With The Neighbours

January 2007 | Political Risk Analysis

It is not just with Washington that Tehran has tense relations. Despite public declarations to the contrary, the Arab world - and particularly the Arab states in the Persian Gulf - are in fact highly perturbed by Iran. Historical enmities, nuclear ambitions, the growing regional power and influence of Tehran within the Middle East and its support of organisations deemed terrorist by many are certainly playing on the minds of many Arab leaders. Jordan's King Abdullah II has already warned of an emerging 'Shi'a crescent', and reports suggest that the House of Saud may be willing to back Sunni groups in Iraq against Shi'a domination. Nevertheless, while we see relations between Tehran and the Arab states coming under increasing pressure, we believe that both sides will seek to avoid adopting an overly confrontational stand.

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