Economy / Syria
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Syria
May 2008 | Ratings UpdateSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Iran and Syria have signed a new defence cooperation pact, only a week after turkey confirmed rumours that Damascus had begun indirect peace talks with Israel over the occupied Golan Heights. While we retain our core scenario that a deal with Israel is highly possible in the medium term, the strengthening of defence ties with Iran clearly highlights Syria's enthusiasm to remain close friends with the Islamic Republic. The issue will therefore remain a key stumbling block in the negotiations, and as such, we expect slow progress on any peace deal over the Golan Heights.