ESCWA: War on Gaza Sets Backs Development by 69 Years

Analysis: Middle East in Iranian Eyes

• CrossFireArabia
• April 19, 2026

CROSSFIREARABIA – During the Israeli Genocide on Gaza Benjamin Netanyahu used to stand up and say with a smirk: ‘We are changing the face of the Middle East’.

Upbeat about murdering the women and children of Gaza from the late 2023 onwards, he was talking about the further normalization of the Arab world as established by the Abraham Accords, establish an economic order under Israel’s hegemony and end Hamas, Hezbollah and Houthis while clipping the wings of Iran.

Of course, Netanyahu’s face soon changed, albeit two-and-a-half years later, when Iran and Hezbollah were forced into a war generated by Israel and the USA on 29 February, 2026. While Iran got a battering, in the next 39 days, US ships and military bases in the Gulf and Jordan received such a hammering that soon forced US President Donald Trump to plead for a ceasefire.

In this war, Israel received a great shock, being attacked literally on an hourly and daily basis with its buildings, military basis and infrastructure taking directs hits while its millions of people living in underground shelters around-the-clock. 

To use a metaphor Tel Aviv’s nose was being rubbed in the sand in a way that has never been imagined by Netanyahu nor his ilk of extremist right wing fascist politicians who started calling for the expulsion of Gaza Palestinians from their homeland ever since the Israeli genocide on them since 7 October, 2023. 

Today’s Netanyahu’s vision of a new Middle East has been drastically changed, thrown in his face in fact! Iran’s political stances and its missiles have changed things around. The US and Israel were not able to change the current Iranian government in Iran despite killing the country’s spiritual leader Ali Khameini, have not ended the country’s nuclear program nor ended its ballistic missiles. 

So what is Netanyahu talking about? Yes, today there is clearly a new Middle East emerging but it is not according to Netanyahu’s eyes nor his wishful thinking. If anybody should be ‘celebrating’ it is clearly Iran, it’s government, revolutionary guard, its Generals, officers and soldiers who are very probably changing the face of the Middle East and may even be setting the map of how the region should look like in form from now on. 

From day one of the war, Trump started running scared despite his outlandish mutterings! He came to realize quickly that Netanyahu and the Mossad pushed him against Iran, convincing him it would be an easy fight and the government there would fall like a pack of cards. Trump since, started kicking himself as he finally fell to Netanyahu’s squinted prism to go after that country. Netanyahu kept pushing for this wild step since the 1990s through previous US presidents from Bill Clinton, George W Bush, Barack Obama and Joe Biden.

But they did not listen to him however, Trump fell into the trap and maybe this is why he is now privately kicking himself because he basically sent the globe into an economic tailspin and soaring exorbitant oil prices, a potentially deep recession and financial chaos.

In this war Netanyahu may have shot himself in the foot. His alliance with the USA  juxtaposed by Hezbollah whose fighters laid dormant since November 2024 when it stopped firing at Tel Aviv was a big surprise to the latter. Israel had previously thought that Hezbollah agreed to a ceasefire out of weakness and thus their entry into military action was unexpected. Hezbollah kept the military pressure on for six more days after Washington signed off with Iran and beating the Israeli army into submission.

On day 46 Trump intervened calling on the Israeli army to stop fighting Hezbollah. He had ulterior motive, he wanted to extract a normalization agreement between the Lebanese government and Israel; their ambassadors had just started meeting in Washington at the invitation of the US State Department in an upbeat atmosphere and inline for a final agreement to establish an accord between Tel Aviv and Beirut alongside the ones signed between Israel and four Arab states, the UAE, Bahrain, Sudan and Morocco starting September 2020. 

Thus a normalization agreement would be a feather in Trump’s cap, a sort of prestige move for the US president. But his pressure may have been seen as a life-saving formula. Trump was saving Israel from Netanyahu’s insistence that his army to keep fighting in southern Lebanon. Its fight has already cost Israel at least 13 soldiers who were killed, more than 500 injured and more than 100 topnotch Merkava tanks destroyed. Israeli towns and cities were being hammered from the north.

Israel was being beaten from the north. Its towns, cities and military bases again were wide-open to incoming rockets from Lebanon and were not being deflected. It was a war that had to be stopped. This time Trump insisted. If a ceasefire with Iran was going to stick, then Netanyahu had to be forced to make his soldiers stop their fight in Lebanon. 

Thus for the time being Netanyahu’s hand lie in check. Yet in the long run his dream for a new Middle East with Israel playing a central part in it may have been halted. After all, no Gulf or even Arab states now would think of normalizing with Israel despite the fact that Lebanon is being forced into it, but even for then its early days.

Netanyahu can kiss goodbye his long-life attempt to sign a normalization accord with Saudi Arabia for instance, a kingdom which is seen as a “major puller” in the Arab and Muslim world. It has already said that normalization is off the table with Israel. The Gulf has been disappointed in this war because it showed that America were not able to protect them from Iranian missiles that targeted their infrastructure as well the US military bases strewn across the region.

Netanyahu has lost on the economic level as well. His country stands economically devastated, army in ruins as admitted to by the Israeli chief of staff Eyal Zamir, and the dream of opening an ‘economic Middle East’ is definitely dashed for the time being.

America, as Trump knows, is left to pick up the pieces of a tattered world caused by war any choas in a region that is vital to the global system.