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Business Fortune
16 January, 2026
In the early months of 2026, there is a collective sense of anticipation throughout the globe. The international news has continuously highlighted one specific danger we currently face together, another war breaking out between the US and the Iranian government through military action. For many years, both countries continue to engage in their so called "Shadow War;" however, relations between the US and Iran have sharply increased and the intensity of the negotiations of this conflict increased. Both sides have gone beyond just making statements with threatening language concerning military operations and have started to locate troops and military equipment to support any future escalation of this conflict.
The Current Flashpoint: A Nation on the Brink
As of January 2026, Iran's historic domestic unrest is the main cause of the current escalation. Protests have broken out in all 31 Iranian provinces due to a collapsing economy and increasing inflation. Human rights organizations estimate that thousands of citizens have lost their lives as a result of Tehran's ruthless security crackdown and almost complete internet blackout.
The administration's approach in Washington has changed from one of diplomatic prudence to one of intervention. The Iranian government has been openly warned by President Trump that help is on its way for the demonstrators, suggesting that the US is ready to use military force to put an end to state-sanctioned brutality. The United States has lately moved major military forces in the Persian Gulf and intercepted "shadow fleet" vessels carrying sanctioned oil, proving that this is more than simply a verbal spat. As an indication that both sides are getting ready for a possible "hot" exchange, some non-essential troops have been told to evacuate important regional centers like Qatar's Al Udeid airfield.
Roots of Animosity: The 1953 Coup and the Cold War
The 1953 coup, which was the first breach in US-Iranian relations, must be considered in order to understand why a strike in 2026 is being considered. The two countries were involved in a conflict over oil and ideology prior to becoming bitter enemies. The CIA and British intelligence planned Operation Ajax to remove democratically elected Prime Minister Mohammad Mossadegh when he attempted to nationalize Iran's oil industry, which had previously been under British control.
Iran became a crucial Western pillar in the Middle East for more than 20 years after the coup restored Shah Mohammad Reza Pahlavi. Under the Atoms for Peace project, the United States actually assisted Iran in starting its nuclear program during this time. But the autocratic reign of the Shah and his perceived role as a puppet of the USA planted the roots of a discontent that would ultimately transform the world.
1979: The Revolution That Changed Everything
The most serious break between Iran and the United States occurred in 1979 during the Islamic Revolution. The Shah of Iran was overthrown and sent into exile, while Ayatollah Ruhollah Khomeini returned to Iran to set up a theocratic government in place of the deposed monarchy. The hostages were kept for 444 days until President Carter was removed from office.
Not only did this incident cut diplomatic relations, but it also changed how Americans viewed and perceived Iran. From that point on, a new definition of what it meant to have a relationship with Iran grew each year through a series of events and actions, such as continuing the pressure on Iran through maximum pressure strategies, proxy wars in Lebanon and Iraq and conflicts in Yemen; launching a "shadow war" via cyberattacks on Iranian military bases and assassinations of political and military leaders, including General Qassem Soleimani in January 2020; and more direct military exchanges both in 2024 and 2025.
The Nuclear Tug-of-War
The worldwide struggle over nuclear weapons is at this point an existential question. The United States and its partners have laboured for years to stop Iran from creating nuclear capabilities or developing a breakout capability. The 2015 signing of the Joint Comprehensive Plan of Action (JCPOA) offered some diplomatic hope, but with the withdrawal by the United States, the two countries were again on a path toward confrontation.
As has been demonstrated in extensive reviews of the respective military capabilities of both countries by 2025, the Iranian nuclear plants in Natanz and Fordow were nearly achieving the critical thresholds of capabilities that were outlined in the JCPOA. The United States and Israel conducted a series of much targeted attacks against parts of Iran’s nuclear facilities in June 2025 and it appears that the leaders of Iran are now more confined in their ability to pursue their nuclear programme instead of being stopped from continuing their nuclear programme as a result of these attacks. Thus, we see Iran conducting very aggressive military exercises and making military threats toward both the United States and Israel today.
Looking Ahead: Diplomacy or Devastation?
The future is unclear as of middle of January 2026. In an effort to deprive the regime of resources, the US is implementing a "Maximum Pressure 2.0" plan, which involves imposing 25 percent tariffs on any country doing business with Tehran. However, the possibility of a "miscalculation" is greater than before. Iran may attack US. bases in Bahrain and Qatar directly or target the world's energy supply in the Strait of Hormuz if it believes its existence is in danger.
The whole community is still split. Regional allies are concerned that a US. strike may spark an uncontrollable regional firestorm, notwithstanding the G7's threats of additional sanctions for violations of human rights. The important question for 2026 is not only whether the US will start an attack, but also what will happen the day following. Will an attack bring together a divided country against a shared threat or will it strengthen a democratic revolution? The only thing that is known in the Middle East's insecure environment is that the current situation is not sustainable.