Avoiding global recession ought to be the priority: Centerview Partners' Haass on Iran stalemate

Richard Haass, president emeritus of the Council on Foreign Relations, evaluates the limited prospects for a high-stakes diplomatic meeting between the U.S. and China, suggesting a "smooth" but low-impact summit is preferable to trading geopolitical interests for commercial gains. A primary concern remains the potential for the U.S. to offer concessions regarding Taiwan or arms supplies in exchange for improved trade ratios. While a working group or hotline for AI may emerge to prevent accidental escalations, China remains suspicious of American efforts to stifle its technological growth. Regarding Middle Eastern tensions, the discussion highlights the urgent need for serious diplomacy to secure vital maritime routes like the Strait of Hormuz and the Red Sea. Without significant compromises from the U.S. and Saudi Arabia toward Iran and the Houthis, the risk of damage to regional energy infrastructure remains high, threatening a potential global recession.