Israeli Prime Minister Benjamin Netanyahu, however, welcomed the statement, saying it “rights a historical wrong”, adding that Israeli courts were the place to determine the legality of the settlements, “not biased international forums that pay no attention to history or facts”.

The imbalance of forces between the US and Iran all but assures Washington of military dominance over Iran. Tehran knows this, and the country can hardly want to face an invasion. Plus, the apparent failure of explosives in the two seaborne attacks does not do much for the reputation of the Iranian military. However, both the ramping up of military rhetoric and the spectre of a long-time enemy looming large plays well politically for both the Trump and Rouhani governments.

China’s Belt and Road Initiative (BRI) has attracted global attention. Many questions were raised with regards to its scope, aims and feasibility. Now, five years on and with two major meetings concluded (the second was the size of a UN General Assembly), these questions are beginning to fade.

For Russia, extending its hand to the region might indeed be useful; for Saudi Arabia, the decision appears more pragmatic as its once go-to allies for economic cooperation have been the US and Europe. However, the Saudis have several reasons to no longer trust the West and to seek support elsewhere.

Considering the target and extent of the attack, oil prices have remained relatively stable. There could be well-founded concerns on the horizon, however, given the less than clear messaging on the damage caused to the Saudi facility and its ability to fulfil supply commitments. We could, in fact, see oil prices rise well above the norm while any other hits in oil-producing countries could tip the balance.

The effects of an attack on a major Saudi oil facility on 14 September 2019 have been felt far beyond the powerful petrostate. The incident brings a network of states and allies closer to direct military confrontation while rocking stock and energy markets.

The crisis hitting UNRWA is therefore not just a crisis of funding or misconduct, but is connected to attitudes towards its existence due to its symbolic affiliation with the right of return. Global support for the organisation still remains high but the risk of Israeli and US pressure securing the severance of its mandate looms nearby, and this could have serious effects on those who use its services.

In the background, the Islamic Revolutionary Guard Corps captured the British tanker Stena Impero and its 23 crew members in the Gulf on 19 July, provoked by the UK detaining an Iranian tanker off Gibraltar to stop it taking oil to Syria, which some reports indicate followed pressure from the US. The EU has remained fairly silent on the matter, and Britain is contending with a possible no-deal Brexit under newly appointed prime minister Boris Johnson. While these issues remain separate from INSTEX, the mechanism’s application, membership, scope and survival could prove to be a diplomatic minefield in the current geopolitical environment.

Iran’s main bet on defying U.S. pressure is whether it can find parties that can help circumvent U.S. sanctions, especially in its oil exports. China is one of Iran’s major importers and seems to eye a strategic interest in supporting Iran’s policy of resisting U.S. maximum pressure. But the question is: to what extend can China support Iran’s resistance?

The Iranian threats were made clear: if Iran is to be suffocated, the global economy will face a real danger. This is of course Iran’s last option, but should be very much effective and annoying to Washington’s strategic community.