Dubai is charting a determined comeback in the wake of war, pinning its hopes on the emerging peace talks between the U.S. and Iran. While cautious optimism boosts business sentiment, analysts warn that a full economic recovery may take time.

U.S. envoy Tom Barrack said Monday that Israel must now “honour commitments” it accepted under the cease-fire that ended its war with Hezbollah. The demand coincided with Beirut’s announcement of a process to disarm the militant group—linking Israeli obligations to Lebanon’s latest move.

European nations, split over their approach to the Israel-Iran conflict, failed to achieve results in recent negotiations. Friday’s fruitless talks highlight the challenges posed by Europe’s internal disagreements in mediating peace.

Israel’s recent air campaign against Iran has opened Pandora’s box, sparking fears of regional instability. As Middle Eastern powers grapple with the potential fallout, a negotiated solution to Iran’s nuclear program emerges as the best path forward.