US elections set to disappoint region
22 January 2024

Donald Trump’s thumping victory in the Republican Party’s Iowa caucus on 15 January – the first of the US presidential election year – suggests the former president will clear the first of three obstacles separating him from four more years in the White House.
Trump’s opponents claim the result means little and other challengers will shine in due course. The Republican Party’s nomination for president and vice-president, which will be confirmed at its national convention in Milwaukee in July, is far from certain.
But that was said in 2016. And we all know what happened next.
A larger obstacle is the 91 felony counts across two state courts and two federal districts, together with a civil suit in New York that could wreck Trump’s businesses. These will come to a head in the middle of the campaign and could influence it.
Lawsuits in some US states that seek to have Trump disqualified from the presidency even if he wins in November will certainly be challenged in the Supreme Court. This is unprecedented and the outcome cannot be confidently forecast.
The final hurdle is winning the presidential vote itself. Opinion polls suggest Trump would beat President Joe Biden, but not by much. More worrying for the Democrats is the slump in Biden’s job approval rating to the lowest for any US president in the past 15 years.
As in 2020, when he lost, Trump is loathed by many American voters. This time, however, Biden is the incumbent and Trump is the challenger. This could make all the difference.
Trump agenda
This spring, the world will have to face up to the prospect that Trump could well be back in 2025. But what could that mean?
Trump’s agenda pivots on appeasing social conservatives while pleasing the middle class with tax cuts and a fiscal policy that keeps the economy humming. The main differences with the Democrats are issues that split Americans across all parties – such as immigration, law and order, abortion and same-sex marriage – with little resonance abroad.
Trump has promised, as he did in 2016, to encourage more fossil fuel production. However, his foreign policy is potentially as consequential as any attempted by a US president in living memory.
In speeches and interviews in recent months, Trump has said he will review Nato’s mission and ask Europe to reimburse the US for almost $200bn-worth of munitions that it has sent to Ukraine. He has said he could end the Ukraine war in 24 hours, though no one knows how.
Trump plans to raise retaliatory tariffs against countries with trade barriers of their own and has floated the idea of a 10 per cent universal tariff. He has called for an end to China’s most-favoured nation status and new restrictions on Chinese ownership of US infrastructure. Trump rarely discusses Taiwan, though he asserts that China would never dare to invade it if he were president.
Other contentious ideas include intensifying the war against Mexican drug cartels by designating them as foreign terrorists and using special forces to attack their leadership and infrastructure inside Mexico. Under his presidency, the US Navy would enforce a blockade and the Alien Enemies Act would be used to deport drug dealers and gang members.
Addressing the new Middle East reality created since the Hamas attacks on 7 October last year is probably beyond America’s capacities, whoever is in the White House
Regional letdown
Trump’s pursuit of the unconventional overseas essentially stops at the Middle East, however. What he will do in office depends upon who he appoints as secretary of state and to his national security team, but there are clues.
Trump has shifted from criticising Israel’s leaders at the start of the war in Gaza to focusing on calls to crush Hamas and penalise Iran further. Even he cannot buck the pro-Israel passion of many US voters.
For Trump, the Arab world begins with Saudi Arabia. His first overseas visit as president in 2017 was to Riyadh, where he met King Salman bin Abdulaziz al-Saud and now Crown Prince Mohammed bin Salman al-Saud, heir to the Saudi throne. The kingdom was euphoric, and the memory of the early, heady days of the first Trump presidency still resonates.
His first secretary of state, Rex Tillerson, who the Saudi government knew as Exxon chief executive, was quickly sidelined and replaced in 2018 by Mike Pompeo, a pro-Israel hawk.
The Abraham Accords negotiated by Trump’s son-in-law Jared Kushner fell well short of the kingdom’s long-standing priorities. Riyadh indicated it would follow Bahrain and the UAE into the deal subject to an improbable condition: the creation of a Palestinian state in line with the Arab Peace Initiative approved by the Arab League in 2002.
Trump probably believes the accords and the transfer of the US embassy to Jerusalem is his lasting Middle East policy initiative. It may well be his only one. Addressing the new Middle East reality created since the Hamas attacks on 7 October last year is probably beyond America’s capacities, whoever is in the White House.
Experience shows that hopes of a US presidential election making a major difference in the Middle East have been dashed time and time again.
The last time Saudi Arabia publicly signalled its backing for a candidate was when the kingdom’s then ambassador to the US, Prince Bandar bin Sultan, appeared at a meeting in support of President George H Bush in 1992. This was probably counterproductive. Bill Clinton won that year, in part because of his charge that Bush’s foreign policy was potentially antisemitic.
There are three foundations to the Middle East’s view of the battle for the White House in 2024.
Firstly, there is little that regional powers can do to influence it.
Secondly, whoever wins will invariably default to the prevailing wisdom and doctrine in Washington, which at present is staunchly pro-Israel.
And thirdly, the region’s future is mainly in its own hands. It is this – not who wins or loses in November – that is the more important realisation.
Image: Trump’s first overseas visit as president in 2017 was to Riyadh, where he met King Salman bin Abdulaziz al-Saud. Credit: Official White House Photo/Flickr
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Brookfield CEO Bruce Flatt has said the asset and alternative investment management company intends to increase its investments in the Gulf, despite the ongoing conflict in the region.
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Insurers will only cover a fraction of war damage to oil and gas facilities5 May 2026

Insurers are expected to cover only a fraction of the damage to oil and gas facilities in the Middle East caused by the regional war, according to industry sources.
Standard industrial property and business interruption policies typically exclude damage and disruption caused by acts of war. Companies therefore need specialist war-risk insurance or political violence and terrorism (PVT) insurance to be eligible for payouts.
While most state-owned national oil companies (NOCs) are likely to have arranged this type of cover for major facilities, it is less common among smaller private or publicly traded companies.
As a result, many assets – such as smaller fertiliser plants and chemical facilities – are expected to be uninsured for war-related damage.
“War insurance was never a widely purchased product in the region,” said one source. “It’s one of these things that people never really believe is going to happen.
“In a lot of companies, spending hundreds of thousands of dollars every year for this kind of product was seen as something they couldn’t really justify.”
Even companies that purchased war-risk or PVT insurance before the US and Israel attacked Iran on 28 February are unlikely to be covered for the full extent of war damage.
War-risk insurance for large assets such as oil refineries or LNG terminals typically carries limits of $200m to $500m.
In many cases, repairs to the region’s large and complex oil and gas facilities are likely to cost billions of dollars.
One source said: “If you had, for example, an oil refinery that’s worth $8bn, you couldn’t really buy a war insurance policy to cover the price of a complete rebuild.
“There just isn’t enough insurance capacity in the market to buy that level of cover.
“Very often NOCs were buying cover at the highest level they could find, but this was limited by what markets were prepared to insure.”
Payout timing
Full insurance settlements for war damage are expected to take significant time – potentially 18 months to two years for some policyholders.
Payments typically begin with an initial payout of around 20%-30% of the total claim. This is followed by a second payment mid-project – usually once engineering is complete – and then a final payment.
In most cases, projects to rebuild and repair damaged oil and gas facilities are not expected to be delayed while owners wait for insurance proceeds.
One source said: “A lot of the owners of these damaged facilities don’t see the current situation as the right time to start rebuilding, but that isn’t because they are waiting for insurance money.
“The risk of new attacks and more damage is still high, and they are going to want to wait for signs of more stability before they start rebuilding.”
Experts believe that once the security environment improves, facility owners will begin tendering repair and reconstruction contracts even if insurers have not settled claims.
“A lot of the companies that operate oil, gas and chemical facilities in the region have access to funds that will allow them to rebuild without being reliant on insurers,” said one source.
“Even if they have a policy that they expect to pay out, it is likely that they will go ahead with the project before receiving full payment if they think it is the right time to rebuild.”
Once the security environment improves, the cost of rebuilding fully destroyed units is expected to be higher than when they were originally constructed, due to multiple rebuild projects progressing in parallel across the region.
This is likely to drive a spike in demand for skilled labour and materials, pushing up costs.
Market impact
Insurers providing this type of cover in the region have generally experienced several years of low payout levels, so they are expected to meet claims with limited financial strain.
However, the volume of claims stemming from the US and Israel’s war with Iran is expected to harden the war-risk and PVT insurance market, increasing premiums for owners of oil and gas facilities for some time.
Ultimately, the limited scope of coverage means the financial burden of the war will fall more heavily on asset owners than on insurers.
Even where cover is in place, policy limits mean insurers will only partially offset the cost of rebuilding large facilities, leaving companies and governments to bridge funding gaps.
The experience is likely to prompt a reassessment of risk across the region’s energy sector, with lenders and investors placing greater emphasis on potential political violence-related damage when evaluating projects.
READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDFGlobal energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.
Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
> REGIONAL LNG: War undermines business case for Middle East LNG> CAPITAL MARKETS: Damage avoidance frames debt issuance> MARKET FOCUS: Conflict tests UAE diversificationTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/16683871/main.jpg

