US Threatens to Sink Russia Deeper in Syrian ‘Quagmire’

American soldiers patrol on the M4 highway in the town of Tal Tamr in the northeastern Syrian Hasakeh province on the border with Turkey on January 24, 2020. (AFP)
American soldiers patrol on the M4 highway in the town of Tal Tamr in the northeastern Syrian Hasakeh province on the border with Turkey on January 24, 2020. (AFP)
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US Threatens to Sink Russia Deeper in Syrian ‘Quagmire’

American soldiers patrol on the M4 highway in the town of Tal Tamr in the northeastern Syrian Hasakeh province on the border with Turkey on January 24, 2020. (AFP)
American soldiers patrol on the M4 highway in the town of Tal Tamr in the northeastern Syrian Hasakeh province on the border with Turkey on January 24, 2020. (AFP)

American officials have been clear in their message to Russia over Syria: We must either work together to reach a settlement, which includes a change in the regime’s behavior and implementation of six key conditions, or raise the cost of the Syrian “quagmire”. The second option is a reminder to Moscow of the American experience in Iraq and the Soviet experience in the Afghan conflict, which has been raging since 1979.

Six conditions
In early 2018, US Special Representative for Syria Engagement, James Jeffrey, and his deputy, Joel Rayburn, presented President Donald Trump with a number of suggestions on the Syrian conflict. They agreed on six American points that would lead to normalizing relations with the Syrian government: 1) Ending support for terrorism, 2) cutting military ties with Iran and its militias, 3) ending hostile acts against neighboring countries, 4) abandoning weapons of mass destruction and the chemical weapons program, 5) the Damascus government must introduce changes on the ground that will allow refugees to voluntarily return home – effectively the implementation of United Nations Security Council resolution 2254, and 6) putting war criminals on trial.

Speaking at a seminar earlier this week, Rayburn said the first four conditions have been demanded by Washington even before the anti-regime protests erupted in 2011. These are conditions that are demanded from any Syrian government. People come and go, but any Syrian government must commit to these conditions because they impact American national security.

In May, Jeffrey said: “I've never seen a regime that poses more threats to its region and to the American idea of how the world should be organized.”

These six conditions have become a central part of the Caesar Act that was approved by Congress, signed by Trump and went into effect in June.

Pressure tools
Washington holds a number of pressure cards to achieve its demands:

1) It has troops deployed in northeastern Syria. Rayburn had encouraged Trump to keep some 500 soldiers deployed east of the Euphrates River and more than a hundred at the al-Tanf base shortly after he announced in October 2019 that he wanted to withdraw troops from Syria

2) It provides logistic and intelligence support for Israeli raids on Iranian positions in Syria.

3) It is exerting pressure on the European Union to keep its economic sanctions on Damascus and preventing it from normalizing diplomatic ties with it.

4) It is preventing Arab countries from restoring Syria’s membership in the Arab League and also discouraging them from restoring political or diplomatic ties with it.

5) It is supporting Ankara’s efforts to bar regime forces from returning to northwestern Syria and trying to turn the Idlib ceasefire into a nationwide ceasefire.

6) It is coordinating with western and Arab countries at the UN over the Syrian chemical weapons file and human rights violations. It is also seeking to hold regime officials to account over their crimes. A Security Council meeting will be held to that end.

7) It is supporting the peace process, led by UN special envoy Geir Pedersen, aimed at introducing constitutional reform and implementing resolution 2254.

8) It is increasing economic sanctions, the last of which was the implementation of the Caesar Act.

Caesar messages
American officials believe the Caesar Act delivered four key messages. They noted the significance of it being approved by both Republicans and Democrats at Congress. Rayburn said that pressuring Bashar Assad’s regime was not a point of contention in Washington, rather there was consensus over the issue. The consensus has dashed the hopes of parties of dreaming or promoting potential American policy change. Nothing will change even after the presidential elections in November, he added.

The Act also eliminated dreams of a military victory for the regime. Rayburn said that the regime and its loyalists believed that once they achieve military victory on the ground, then the money will begin to flow in Syria and they will all reap the benefits. This is not true, he said. There is no light at the end of the tunnel and the situation will not go back to how it was.

The Act was also message to regional countries to discourage them from investing in regime-held regions in Syria, Rayburn said. Anyone making such a move will risk being slapped with sanctions and being left out of the American financial system. Washington has, however, been trying to exempt northeastern and northwestern Syria from the sanctions. American officials have been clear in addressing “Arab and regional friends”, continued Rayburn, saying that no one was exempted from sanctions.

The last message is aimed at deterring the military machine. Rayburn explained that the process of reaching justice and accountability is often slow, but the American message is clear: It will never forget. Regime loyalists will now realize that the day when they will be held to account will come sooner or later. This should prompt them to change their calculations.

Syrian ‘quagmire’
American officials believe that these “tools” will persuade Russia to change its course in Syria on the medium- and long-terms. They will therefore, continue to impose economic sanctions under the Caesar Act. Rayburn said this will be the “summer of Caesar” with some one hundred individuals and entities set to be blacklisted in order to raise the cost of the Syrian quagmire.

Jeffery had previously said that the Russians did not have a “political way out” of their problems in Syria. “Our job is to present them through the UN and our support for the UN, with a way forward, but that requires them distancing themselves to some degree from Assad and from the Iranians,” he added.

Rayburn believes that the Russian can influence Damascus. Pressure can also push Moscow towards joining serious negotiations aimed at implementing the above-mentioned six conditions. The alternative would see it sink even deeper in the Syrian quagmire.

Jeffery had on more than one occasion said that his mission when he assumed his post two years ago was to transform Syria into a quagmire for the Russians. “We are pursuing what we think is a smart policy,” he stated, saying the American military presence is aimed at cracking down on ISIS and supporting military operations carried out by other countries, such as Israel and Turkey, while also focusing on economic and diplomatic pressure.

“This isn't Afghanistan, this isn't Vietnam,” he explained. “This isn't a quagmire. My job is to make it a quagmire for the Russians.”

Rayburn explained this position further. When the Russians intervened militarily in Syria five years ago, they did not believe that they would have such a result today, he said. He echoed Jeffery’s statements on the quagmire, wondering if Russia would still want to have the same result five years from now. Military involvement is very costly and there is no light at the end of the tunnel.

He added that when the regime captured eastern Aleppo in late 2016, it believed that military victory and the end of the war were near. It thought that it could reap the rewards of the victory. He said that this was not true. The conflict cannot be resolved through the military machine, but with politics. Anything other than that would mean the war will last forever, he warned, citing the conflict in Afghanistan which is still ongoing.



Investors Prosper and Consumers Pay as the Iran War Exacts an Uneven Economic Toll 6 Months in

People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
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Investors Prosper and Consumers Pay as the Iran War Exacts an Uneven Economic Toll 6 Months in

People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters
People walk near an anti-US mural in Tehran, Iran, July 15, 2026. Majid Asgaripour/WANA (West Asia News Agency) via Reuters

As the US and Israel relentlessly bombed Iran in the opening days of war, the most dramatic predictions of the conflict’s toll were unsparing: surging oil prices, worldwide recession and economic catastrophe.

But six months into the conflict, the direst predictions haven’t come true even if no corner of the world's economy has been untouched.

“So far, the global economy has pulled off the financial equivalent of a ‘Mission Impossible’ scene,” said Michael Ashley Schulman, an investment strategist with Cerity Partners.

Here's a look at how the global economy has weathered the war, and who have been the winners and losers:

Winner: Investors who didn’t panic

Stock markets hate uncertainty, and the decision by the US and Israel to attack Iran on Feb. 28 delivered heaps of it. Columns of smoke rose from Tehran, frantic Iranians clogged roadways trying to escape, and mounting deaths, including of children, made headlines. It was enough for any investor to feel squeamish.

Oil prices surged and Wall Street began a retreat that would begin five consecutive losing weeks. The Dow and Nasdaq entered corrections. The S&P 500 had its worst month since 2022.

But a major turnaround has unfolded since the market bottomed in late March. The Dow has gained nearly 19%, the S&P is up almost 22% and the Nasdaq has surged 27%. If those gains survive the waning months of 2026, all three indexes would post their fourth consecutive year of gains.

The International Monetary Fund, in a July report, said the economy was “being shaped by two major forces, pushing in opposite directions.” The war has strained growth, but enthusiasm over artificial intelligence has offset the drag.

Main Street may be paying more for fuel, food and travel. But Wall Street, so far, is shrugging it off.

Loser: Anyone on the move

The war's most obvious economic consequence has been its impact on oil. With tanker movement through the Strait of Hormuz slowed to a crawl, the price of Brent crude climbed from a prewar close of about $72 a barrel to as high as nearly $120. Although prices have eased, they are still up about 20% from before the war.

Oil's price affects everything from crayons to cosmetics, but it hits anyone on the move especially hard.

Jet fuel is expected to cost, on average, 70% more than in 2025, according to the International Air Transport Association. Airlines, in turn, have raised ticket costs, hiked baggage fees and slapped on fuel surcharges while slashing flights or backing off from plans for added routes. Lufthansa Group, for one, cut 20,000 short-haul flights. Spirit Airlines, though troubled for years, evaporated.

“The likelihood that fuel surcharges are going to be rolled back and airfares are going to be brought down is very low over the next few months,” said Brett House, a Columbia University economist. “There is less choice for consumers and less competition between airlines, and therefore, less pressure to rein in fare increases.”

A plume of smoke rises after a strike on the Iranian capital Tehran, on March 3, 2026. (AFP)

Winner: The case for clean power

With tankers at a standstill and fuel prices climbing, the war strengthened a clean-power sales pitch.

Sales of electric vehicles hit records in some parts of the world. In Singapore, year-over-year growth of EVs reached 110%. In New Zealand, the figure hit 180%. And in Colombia, EVs notched a 300% increase.

Worldwide, EVs are projected to account for 29% of total vehicle sales in 2026, according to an International Energy Agency outlook, up from 25% last year. That growth is even more impressive considering the world’s two biggest economies, the United States and China, saw declining demand for EVs.

Countries that were particularly reliant on Gulf oil have been spurred to action. In Southeast Asia, leaders have rolled out more use of renewable energy and researched deploying nuclear power. In Africa, countries have looked to expand domestic refining and accelerated the installation of solar panels.

Scott Lehmann, a supply chain expert at Sphera, an operational intelligence firm, counts 26 countries and regions that have announced clean energy and electrification measures in response to the war.

“The crisis is forcing investment faster than any policy framework would have,” he said.

Loser: The fight against hunger

For the privileged, the costs brought by war may barely be a blip. For the poorest, it's a different story.

With the Gulf not just a leader in global oil production, but also of fertilizer, the war has dealt a blow to farmers. Just as many were making decisions about their crops, fertilizer prices soared, peaking in April at 44% higher than before the war, according to the World Bank’s price index.

In response, some farmers trimmed their fertilizer use, potentially imperiling next year’s harvests. “If you’re reducing your fertilizer usage right now, it’s in a way borrowing against next year’s soil health,” said Arif Gasilov, a natural resources expert with the Gasilov Group consultancy.

The United Nations World Food Program has warned that tens of millions could be pushed into hunger. In testimony this week, its acting executive director, Carl Skau, said the “suffocation of fertilizer exports” had hit Asia and Africa hard. Higher transportation costs hindered the WFP’s own humanitarian efforts, too.

“An oil tanker anchored in the Strait of Hormuz can mean one less meal a day for a child in Sudan,” Skau said. “When oil prices go up, so does the price of flour, rice and vegetables.”

A drone view shows vessels near the Strait of Hormuz, as seen from Musandam, Oman, August 28, 2026. (Reuters)

Winner: The Trumps’ businesses

The war has already cost the US tens of billions of dollars and caused thousands in Iranian casualties. It has shaved an estimated hundreds of billions of dollars from projected global output.

But the family of the man at the center of it all, President Donald Trump, has been among the beneficiaries.

Military contractor Powerus, about to be taken public by Eric and Donald Trump Jr., won an Air Force contract worth as much as $90 million to supply interceptors to shoot down Iranian drones.

Similarly, the private equity firm 1789 Capital Management, which Don Jr. joined days after his father’s reelection, owns stakes in several other military contractors profiting from the war. One of them, Anduril, won US approval for up to $2 billion in sales of drone interceptors. A second, Elon Musk’s SpaceX, is providing satellite service to guide US drones against Iran. And a third — rocket maker Firehawk Defense — won Pentagon contracts for propellants and warheads to replenish dwindling US supplies.

A spokeswoman for 1789 Capital, Alexa Henning, said Don Jr. wasn't involved in the decision to put money in those companies, so there is no “nefarious connection.”

The president himself has done well, too.

His investment portfolio run by outside managers has scooped up shares of US military suppliers helped by the war, including Lockheed Martin, General Dynamics and Northrop Grumman. Democrats released a report this week saying Trump’s holdings in oil and gas stocks have soared by as much as $15.5 million.

A White House spokeswoman, Anna Kelly, insisted “there are no conflicts of interest” and that “President Trump only acts in the best interests of the American public.”

Even as Trump's personal finances have benefited, his political fortunes are another question. The conflict has been unpopular and could weigh on voters as midterm elections near.


US Military Families Ride ‘Roller Coaster of Emotions’ Over Six Months of Iran War

This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)
This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)
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US Military Families Ride ‘Roller Coaster of Emotions’ Over Six Months of Iran War

This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)
This US Navy handout photo released on July 15, 2026 and taken on June 30 by US Central Command Public Affairs shows the Carrier Air Wing (CVW) 7 flying in formation over the USS George H.W. Bush (CVN 77) in the Arabian Sea. (AFP / US Central Command Public Affairs)

Since the United States went to war with Iran six months ago, Courtney Sanders has been helping soldiers’ families fill the gaps left by their loved ones.

There are school pickups to coordinate, lost incomes to supplement — and the ever-present separation anxiety.

“It's like being on pins and needles all of the time,” Sanders said.

She leads the Chicagoland chapter of Blue Star Families, the nation's largest nonprofit serving military families, and her own daughters are in the US Navy. They have served in various overseas locations over the past six months, including the Middle East.

The US has more than 50,000 troops stationed across the region and has deployed thousands of additional Marines and sailors to support the war effort. Eighteen US service members have been killed in the conflict and more than 750 wounded.

During the war's on-and-off fighting, shuttle diplomacy and failed peace talks, military families have experienced a “roller coaster of emotions,” Sanders said. “The moment that you feel you're able to take a breath, you ‌get gut-punched again.”

These ‌are familiar pressures for the partners and children, mothers and fathers, of American troops. But ‌the ⁠suddenness of the Iranian ⁠conflict, and its fitful pace, have had a compounding effect, relatives told Reuters.

In a Blue Star Families poll of some 200 active-duty military families in early March, 81% reported elevated stress from the Iran conflict.

The group has responded by stepping up its programming, creating online resource hubs, hosting webinars and in-person meet-ups, and matching military spouses going through a deployment for the first time with those who have been through it before.

Many service members' deployments have been extended unexpectedly. The USS Abraham Lincoln aircraft carrier went more than 200 days without a port call — a modern-day record, according to Democratic lawmakers — and military outlets reported suicide attempts and declining morale among its 5,000 sailors and Marines.

US Defense Secretary ⁠Pete Hegseth said the reports “completely misrepresented” the conditions on board.

Some military families find themselves ‌in financial straits.

National Guard members, for example, often work regular jobs when they are ‌not deployed. The sudden loss of their main paycheck can make it hard for those left behind to keep food on the table, Sanders ‌said.

"There is a huge misconception in the civilian world that if you are in the military, all of your bills ‌are taken care of,” she said. “And that is just frankly not true.”

In a statement, the Pentagon said: "We see these families (and) we hear their concerns. We will do whatever is necessary to provide the resources, assistance, and stability they need and deserve during these challenging times."

'A LOT OF EMOTIONS'

Shannon, an Army spouse and mother of three in North Carolina who requested Reuters use only her first name for security reasons, tries to ‌tune out the news and the political debate surrounding the war.

In February, her husband deployed to the region with five days' notice and could only contact her sporadically for the first ⁠several months.

Although they have maintained ⁠near-daily communication since June, "there are a lot of emotions,” Shannon said, “especially when people are dying over there.”

Her children started therapy over the summer. She tries to be strong in front of them, but cries sometimes when they’re not around.

Soon after her husband's deployment, Shannon joined an Army-sponsored soldier-and-family "readiness group" within her husband's unit, helping organize meal trains and other support for family members in need.

"Every day is not going to be a great day, but you've gotta just keep going and keep yourself busy," she said.

In Virginia, Pat, a Navy spouse who also asked to be identified by her first name for security reasons, has tried to keep life as normal as possible for her children, who are in middle and high school.

Since her husband deployed about five months ago, Pat said, her neighbors have been "amazing" about helping with kid pickups and other chores.

Her family wears red on Fridays — a show of support for deployed service members — and so do many of her children's classmates, even those without military connections.

Pat's husband has deployed before. She was pleasantly surprised this time to discover his ship had Wi-Fi, making communication easier.

Still, her family is grappling with the uncertainty of when he will return.

"Having older kids and knowing that dad wasn't there to see those sporting events, some of that's been a little emotional," she said. "But my kids are very resilient."


Data Center Backlash Scrambles US Midterm Politics

In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)
In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)
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Data Center Backlash Scrambles US Midterm Politics

In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)
In an aerial view, the Stargate Oracle AI data center campus is seen on August 26, 2026 in Abilene, Texas. (Getty Images/AFP)

The data centers powering America's artificial intelligence boom have become an unlikely target in November's midterm elections, as anger over rising electricity bills and noise turns Democrats -- and a growing number of Republicans -- against Big Tech.

Candidates in at least 21 races across 18 states have aired television advertisements mentioning data centers this cycle, according to marketing data cited by US media, almost evenly divided between both parties.

On the grid serving Senate battleground Ohio, as well as 12 other states, demand from data centers drove up capacity costs by $9.3 billion in a single year, a 174 percent increase, according to an independent market monitor.

Anger over household bills has merged with a broader populist distrust of Silicon Valley, exposing lawmakers who, until recently, were courting the sprawling server farms with tax breaks and promises of jobs and investment.

In Texas, Republican Governor Greg Abbott has frozen new projects while regulators weigh their impact on power and water supplies. It was Abbott who, not long ago, called his state the "epicenter of AI development."

His Democratic challenger wants a moratorium until lawmakers pass stronger safeguards, and accuses Abbott of putting wealthy interests ahead of ordinary Texans.

In Brazoria -- between Houston and the Gulf Coast -- 44-year-old Melissa Burnett told AFP the serenity of her quiet neighborhood had been shattered by a 17-megawatt center last year that is "like a freight train always coming at you."

"We were not supposed to hear it, nor was it supposed to affect our quality of life, and it's just done the opposite, you know?" she said.

Almost alone among Republicans, President Donald Trump has not moved. He still calls the industry essential to beating China on AI, leaving him at odds with candidates running under his own banner.

- 'Sleeper issue' -

The midwestern former manufacturing hub of Ohio offers perhaps the sharpest test of the politics of data centers.

Sherrod Brown, a Democrat who lost his Senate berth in 2024, is running for the Buckeye State's other seat. Brown has run at least four ads attacking Republican Jon Husted for courting data center investment as lieutenant governor.

They brand Husted "the face of data centers," and Brown has promised to make operators pay the full cost of the power they use.

Senate Republicans have warned that the issue could cost Husted the race. Their campaign arm called data centers a "sleeper issue" and said a defeat blamed on them would chill political support for the industry nationwide.

The same argument is turning up in races that have little else in common: a Republican running for governor in Florida promising to shield families from facilities that push up utility bills; a Pennsylvania Democrat demanding that tech companies cover their own costs; a Wyoming Republican who won a House primary on advertisements attacking Silicon Valley billionaires.

In Michigan, the issue toppled two better-connected Democrats in a primary won by a leftist who said opposition had united committed Republicans, Trump voters, independents and Democrats.

- Both parties turn -

In Wisconsin, Republican gubernatorial nominee Tom Tiffany has taken to calling his Democratic opponent "Data Center David Crowley." Earlier this year Tiffany was praising the technology and voting to speed AI infrastructure through.

Tiffany now wants the state's tax incentives scrapped and the industry more tightly regulated, though he stops short of a ban.

Democratic governors are moving the same way.

New York has imposed a year-long moratorium on new hyperscale facilities, and Pennsylvania now requires developers to cover infrastructure costs and meet tougher standards on water use, hiring and community consultation.

Trump has not moved with them.

"America must remain dominant in the AI race that is the future. I think the American people understand that, and this president certainly does," his spokeswoman Karoline Leavitt said on Thursday.

His administration has signed up Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon to a voluntary "Ratepayer Protection Pledge."

Under it, the companies undertake not to leave consumers paying for the power plants and grid upgrades their facilities require.

The pledge has not stopped the advertisements.