WSJ What’s News: How The Israel-Iran War Is Reordering the Middle East
Release Date: June 26, 2025

In this episode of WSJ What’s News hosted by Alex Osola, a comprehensive analysis is provided on the multifaceted impacts of the ongoing Israel-Iran war on the geopolitical and economic landscape of the Middle East. The discussion, enriched with expert insights and notable quotes, delves into various interconnected topics beyond the central conflict, including the influence of oil companies in U.S. politics, significant shifts in media leadership, developments in cryptocurrency regulation, and proposed Republican spending cuts. Below is a detailed summary of the key segments covered in the episode.

1. Influence of Oil Companies in President Trump's Second Term

Timestamp: [01:34] – [03:43]

Alex Osola introduces the segment by highlighting how oil companies have significantly influenced President Trump's second administration. The discussion centers around the oil industry's pushback against Europe's environmental regulations, specifically the Corporate Sustainability Due Diligence Directive.

Key Points:

• Corporate Sustainability Due Diligence Directive: Requires companies with over €450 million in European revenue to report carbon emissions for their operations and those of their suppliers. Non-compliance penalties can reach up to 5% of a company's net annual turnover.
• Oil Companies' Stance: Major oil firms like Exxon, Chevron, and Shell argue that the directive is overreaching, as it extends EU regulations to their global supply chains, irrespective of geographic location.
• Political Alliances: Oil executives have allied closely with the Trump administration, contrasting with other industries such as big tech and banking.

Notable Quotes:

• "Oil executives have been pretty influential so far in the second Trump administration, more so than in his first," explains Alexander Osipovich ([02:43]).

2. Anna Wintour's Departure from American Vogue

Timestamp: [03:50] – [07:19]

The host announces the retirement of Anna Wintour, the iconic editor-in-chief of American Vogue, after an illustrious 37-year tenure. Wintour's influence extended beyond fashion, shaping cultural trends and inspiring characters in popular media.

Key Points:

• Legacy: Under Wintour's leadership, Vogue became a global cultural tastemaker with significant influence in the fashion industry.
• Future Roles: She will remain with Conde Nast as the global chief content officer and global editorial director of Vogue.
• Cultural Impact: Wintour's presence was a fixture in major fashion events and inspired Meryl Streep’s character in The Devil Wears Prada.

3. US Stock Markets Performance

Timestamp: [03:50] – [04:54]

A brief overview of the U.S. stock market highlights is provided, noting significant gains driven by technology and financial sectors.

Key Points:

• Market Indices: The S&P 500 and Nasdaq were approaching new highs before slight retreats in afternoon trading.
• Performance Metrics: The S&P 500 rose by 0.8%, the Dow by 0.9%, and the Nasdaq closed roughly 1% higher.
• Legislative Impact: Recent Senate actions, such as passing the Genius Act, were also mentioned in relation to market movements.

4. Genius Act and Its Impact on Stablecoins

Timestamp: [04:54] – [07:19]

The episode shifts focus to the Senate's passage of the Genius Act and its implications for stablecoin issuers, particularly Tether.

Key Points:

• Genius Act Provisions: Introduces stringent requirements for stablecoin issuers, including mandatory audits of annual financial statements and backing stablecoins with safe, conservative assets.
• Tether's Challenges: Currently, Tether holds reserves in diverse assets like Bitcoin and precious metals, which do not comply with the Act’s requirements.
• Potential Outcomes for Tether: Options include issuing a compliant U.S. version of Tether or withdrawing from the U.S. market entirely.
• Beneficiaries: Companies like Circle, which issue the USDC stablecoin, stand to benefit as they already align with regulatory expectations.

Notable Quotes:

• Colin Eaton remarks, "Stablecoins... need to be backed by very safe conservative assets... Tether has a lot of treasury bills, but it also has part of its reserves in things like bitcoin and precious metals," highlighting compliance issues ([05:06]).

5. Impact of the Israel-Iran War on Middle East Realignment

Timestamp: [07:46] – [10:47]

The core segment of the podcast examines how the ongoing conflict between Israel and Iran is reshaping alliances and power dynamics in the Middle East.

Key Points:

• Military and Political Assertions: U.S. officials, including General Dan Kane and Defense Secretary Pete Hegseth, have maintained that U.S. strikes have significantly hindered Iran's nuclear capabilities. Conversely, Iranian Supreme Leader Ayatollah Ali Khamenei claims victory, asserting that the U.S. overstates its successes.

• Saudi Arabia's Shifting Calculus: Previously motivated to normalize relations with Israel to counter Iran, Saudi Arabia has reconsidered its stance due to reduced perceived threats from Iran and the high casualties from the conflict.

• Regional Realignment: The anticipated integration of Israel with several Arab nations has been disrupted. Iran's weakening position and Israel's fortified military capabilities have altered previous diplomatic efforts.

• Economic Focus of Gulf States: Saudi Arabia and the UAE prioritize domestic economic development over regional conflicts, aiming to maintain stability and avoid being drawn into further turmoil.

Notable Quotes:

• Stephen Kalin observes, "One of the driving motivations for Saudi Arabia to normalize with Israel was to deepen cooperation in countering Iran," noting the diminished threat perception ([08:55]).

• He further explains, "The Gulf has avoided most of [the region's] conflicts... but it doesn't want to get dragged into them," emphasizing the Gulf states' focus on economic stability ([10:11]).

6. Republican Spending Cuts and Senate Ruling

Timestamp: [10:52] – [End]

The episode concludes with an update on the Republican Party's efforts to pass significant spending cuts through the fast-tracked budget process, which has encountered obstacles due to a ruling by the Senate parliamentarian.

Key Points:

• Legislative Hurdles: The Senate parliamentarian's decision complicates the GOP's plans to implement cuts to state provider taxes and Medicaid funding for undocumented immigrants, potentially totaling hundreds of billions of dollars.
• Timeline Challenges: The ruling makes it more difficult for Republicans to present their legislation to President Trump by the July 4th deadline.

Production Credits:

• The show is produced by Anthony Banci, with Michael Kosmides as the supervising producer and additional support from Colman Standifer.

Closing Remarks: Alex Osola wraps up the episode, indicating the continued coverage of global and political developments that influence markets and international relations.

Conclusion

This episode of WSJ What’s News provides an in-depth exploration of how the Israel-Iran war is significantly altering the Middle Eastern geopolitical landscape, while also addressing related economic and political issues. From the influence of oil companies in U.S. administration policies to the regulatory challenges faced by stablecoin issuers, the podcast offers a nuanced understanding of the interconnectedness of global events and market dynamics.