Overview

• A fragile ceasefire brokered by President Trump has largely held since ending the 12-day conflict between Israel and Iran.
• U.S. defense and policy analysts are calling for a reallocation of military resources to counter China’s expanding naval and industrial capabilities.
• U.S. Special Envoy Steve Witkoff has signaled plans to broaden the Abraham Accords to more Arab states to cement regional stability.
• Beijing is closely weighing its response to Iranian appeals for weaponry, balancing economic ties with Tehran against relations with Israel and Western partners.
• The Pentagon’s fiscal 2026 budget request includes over $10 billion for the Pacific Deterrence Initiative to strengthen U.S. posture in the Indo-Pacific.