Trump's Iran deal sparks Gulf allies' fears; oil prices fall to pre-war levels

President Trump's recent interim agreement with Iran, aiming to conclude a conflict that began in February 2026, is encountering significant opposition from both Congress and regional allies. The U.S. Senate delivered a notable rebuke by passing a War Powers Resolution, which directs the President to cease hostilities in Iran, though its legal enforceability remains a subject of debate. This congressional action, supported by a bipartisan group of lawmakers, reflects deep concerns over the administration's Iran policy and its war-related expenditures.

Key Gulf allies are also expressing apprehension regarding the new accord, fearing it may not adequately address regional security issues and could potentially strengthen Iran. Secretary of State Marco Rubio has been actively working to reassure these partners amid their skepticism. Domestically, President Trump faces internal discord within his own Republican party, with some members questioning the immense financial burden of the war—which the White House has estimated to cost around $80 billion—and the overall effectiveness of the Iran strategy.