The Israeli-Iranian conflict has temporarily died down, but the Gaza war refuses to abate. A 60-day truce offer supported by the Trump administration, facilitated by Egypt and Qatar, has yet to take off. While reports had initially indicated Israeli acquiescence, Prime Minister Benjamin Netanyahu ruled out any deal, and Hamas remains non-committal.

Israel and Hamas have radically differing positions. Hamas calls for a complete cessation of fighting and complete Israeli withdrawal from Gaza. Israel, on the other hand, demands the release of hostages and will not end the war until Hamas is wiped from the land. These mutually exclusive demands preclude a quick ceasefire.

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Iran-Israel Truce Sparks U.S. Diplomatic Momentum

The Israeli-Iranian ceasefire has paved the way for renewed American diplomacy. The abiding of the Abraham Accords is being driven forward, and there are indications that Lebanon and Syria may soon join, having been pulled out from under the Iranian umbrella.

In the wake of the Assad regime’s downfall, Washington has accepted Al Shaara’s Syrian government. Ahmed Hussein al-Sharaa—once Abu Mohammad al-Joulani, formerly affiliated with ISIS and Al-Qaeda—was welcomed at the White House, an indicator of a policy change. U.S. sanctions against Syria are being dropped, and economic support packages are in talks.

Lebanon, also, has committed to disarming Hezbollah again in southern areas, getting closer to U.S. and Israeli interests.

Saudi-Israel Normalisation Stuck Over Palestinian Issue

Even with President Donald Trump’s Saudi Arabian visit in May 2025 and a reported $600 billion investment agreement, the normalization of relations between Saudi Arabia and Israel has hit a brick wall. The unresolved conflict in Gaza and the Palestinian issue are chief impediments.

By the end of 2023, normalization had picked up pace. Saudi delegations were headed by Israeli ministers Haim Katz and Shlomo Karhi. Crown Prince Mohammed bin Salman and PM Netanyahu openly confirmed the talks, which involved an American-Saudi defense agreement and a Saudi civilian nuclear facility. Israel would have provided Palestinian factions with limited “guarantees” without promising a two-state solution.

The Gaza war, which was precipitated by Hamas’s October 7 attacks, arrested this momentum. With Saudi Arabia decrying Israeli attacks on Gaza and infringements on Iranian sovereignty on June 13, the vision of near-term normalization is distant. Consequently, broadening the Abraham Accords to Lebanon and Syria is a distant reality at this time.

IMEC: Economic Connectivity as a Path to Peace

Considering these diplomatic challenges, the India-Middle East-Europe Economic Corridor (IMEC) has also come into the picture as a potential alternative for promoting peace. India announced the project during its G20 Presidency in September 2023, designing it to link India with Europe through the Arabian Peninsula as an alternative to the war-ravaged Suez Canal route.

The initiative plans a bold multi-modal network—combining railways, ports, highways, energy networks, and digital systems. It guarantees that trade will be more efficient, it will reduce greenhouse gas emissions, shorten shipping times, and establish a safe regional supply chain.

Gaza Conflict Delayed IMEC, But Global Push Brings It Back

Initially, IMEC’s path went through Israel and Jordan, terminating at the Israeli port of Haifa before going to Europe via sea. The planners excluded Egypt, despite its better infrastructure, reflecting IMEC’s role as both an economic and geopolitical move to integrate Israel.

However, the Gaza war stalled the project. Now, momentum is returning. During Prime Minister Modi’s February 2025 trip to Washington, IMEC featured prominently. It was again discussed during the AI Global Summit in France and during visits by EU Commissioners to New Delhi in March.

India’s External Affairs Minister S. Jaishankar talked at length about IMEC on his June visit to Brussels. Negotiations also covered the India-EU Free Trade Agreement (FTA), reiterating India’s increasing status as a trade and diplomatic center of gravity.

Changing IMEC: Egypt and Oman in the Spotlight

More people increasingly acknowledge that the initial IMEC alignment might need reworking. Including Oman in the east and Egypt in the west could be a more secure path. Bilateral initiatives between India and Gulf states such as the UAE and Saudi Arabia are already in progress to fill infrastructure and regulatory gaps essential for IMEC’s operation.

Europe, too, has welcomed IMEC’s promise. France and Italy have sent special envoys to move the project forward, reflecting EU leadership commitment. With signatories such as Egypt and Oman set to join shortly, the corridor is picking up new momentum.

India’s Role in Leading the New Regional Order

India’s strategic alliances with prominent West Asian and European countries put it at the center of this economic corridor. By valuing collective wealth and commerce over political competition, IMEC presents a realistic road to peace. It could improve where the Abraham Accords faltered—presenting an economic model to stabilize a region long wearied by war.

As diplomacy collapses, one hopes that trade, infrastructure, and connectivity can bring national interests back in line and turn the discussion towards enduring peace in West Asia.