The alliance would serve as a bulwark against Iran. The Shiite state has been the focus of the US president's threats, and a travel ban has seen US visa approvals for Iranians plummet.
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The aim for the alliance of the six Gulf Arab states, Egypt and Jordan is increased cooperation on missile defense, military training, counter-terrorism and developing regional economic and diplomatic ties, according to US and Arab sources quoted by Reuters.
The Middle East Strategic Alliance (MESA) would, in part, counter Iran's expansion in the region.
"MESA will serve as a bulwark against Iranian aggression, terrorism, extremism, and will bring stability to the Middle East," a spokesperson for the White House's National Security Council said.
The White House confirmed it was working on the alliance concept with "our regional partners now and have been for several months."
US President Donald Trump visited Saudi Arabia last year after Saudi officials had raised the idea of a security pact. Riyadh and the United Arab Emirates would take the leading roles in the alliance to work with the US against Iran.
Iran nuclear deal — treaty under threat
A year after Donald Trump pulled the US from the international nuclear accord with Iran, the Middle East nation announced it would no longer adhere to some "voluntary commitments" in the accord.
Image: picture-alliance/epa/D. Calma
The deal breaker
President Donald Trump announced on May 8, 2018 that he was pulling the United States out of the 2015 Iran nuclear deal, arguing that the international accord was not in America's "national interest." The decision threw a cloud of uncertainty over the future of the nuclear accord and raised tensions with US allies in Europe.
Image: Reuters/J. Ernst
Slap in the face
Britain, France and Germany lobbied the Trump administration and Congress to remain in the nuclear accord, arguing that the deal was working and a US violation without a follow up plan would be destabilizing. In European capitals, the Trump administration's withdrawal was viewed as a slap in the face of allies.
Image: Reuters/K. Lamarque
Iran scrap 'voluntary commitments'
A year to the day after Trump's announcement, Iran informed the other signatories of the accord that they would no longer adhere to certain "voluntary commitments." Iranian President Hassan Rouhani said the signatory nations had 60 days to implement promises to protect Iran's oil and banking sectors or Iran would resume the enrichment of uranium.
The decision came after the United States deployed an aircraft, the USS Lincoln, along with a bomber task force to the Middle East. Washington said the deployment was intended as a "clear unmistakable message." Iran said it took action because the European Union and others "did not have the power to resist US pressure."
Image: AP
A triumph of diplomacy
The Joint Comprehensive Plan of Action (JCPOA), better known as the Iran nuclear deal, was signed in 2015 by United States, China, Russia, France, Germany and Britain (P5+1) and Iran following years of negotiations. Under the international agreement, Iran agreed to dismantle its nuclear program and be subject to monitoring in exchange for the lifting of international nuclear related sanctions.
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Compliance and verification
The JCPOA includes a robust monitoring, verification and inspection regime carried out by International Atomic Energy Agency (IAEA). The UN watch dog has verified Iran's compliance with the deal in 12 quarterly reports. The JCPOA allows Iran to pursue a peaceful nuclear program for commercial, medical and industrial purposes in line with international non-proliferation standards.
Image: picture-alliance/dpa/R. Schlager
Obama's achievement
The Iran nuclear deal was President Barack Obama's signature foreign policy achievement. Seeking to undo nearly every Obama administration legacy, Trump came into office calling it the "worst deal ever." The Trump administration argues the nuclear deal doesn't address other unrelated issues such as Iran's ballistic missiles, regional influence, support for "terrorist" groups and human rights.
Image: Reuters/Y. Gripas
Iranians approved
The nuclear deal and lifting of punishing nuclear related international sanctions created optimism in Iran after years of economic isolation. However, even before Trump pulled the US out of the deal, Tehran blamed the US for holding back international investment and not fulfilling its end of the bargain due to the uncertainty created by Trump's threats.
Image: picture alliance/AA/F. Bahrami
The opponents
After eight years with Barack Obama, Israeli Prime Minister Benjamin Netanyahu found the US president he wanted in Donald Trump. The Israeli leader repeatedly slammed the deal despite his own military and intelligence chiefs' assessment the that JCPOA, while not perfect, was working and should be maintained. Saudi Arabia and the UAE are the other main opponents of the nuclear deal.
Image: Reuters/R. Zvulun
Who's left?
The EU-3 (Britain, France, Germany) have scrambled to ensure that Iran receives the economic benefits it was promised in order to avoid Tehran pulling out of the deal. As EU businesses face retaliation from the US for doing business with Iran, many are opting to avoid Iran. This would likely be a present to Chinese and Russian businesses.
Image: picture-alliance/Photoshot
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Trump has maintained a line against Iran since the US administration announced in May it was pulling out of the 2015 international deal to limit Tehran's nuclear program in exchange for reduction in sanctions.
Last week, Trump issued a warning to Iran via Twitter, partly in block capitals, saying the Islamic state risked dire consequences "the likes of which few throughout history have suffered before" if it made threats against the US.
Travel ban effects
The US Supreme Court recently upheld Trump's travel ban on citizens of some Muslim-majority countries —including Iran — which had been imposed in January 2017, although courts blocked it from taking full effect until December.
According to figures in a letter from the State Department to Democratic Senator Chris Van Hollen, the number of people from the affected countries who have been able to obtain visas plummeted from March to May 2018, compared with the same period in the previous year.
For Iran, the number of non-immigrant visas for Iranians dropped from 4,200 in the March to May 2017 period to 750 in the same period this year when the travel ban was in effect. The number of immigrant visas dropped from 1,200 to 200 over the same period.
Among those affected are expatriat Iranians, especially those with family still in Iran. For example, German medical school graduate Fariba Behnia-Willison's brother still works at the Medical Sciences university in Tehran. In order to work in the US, she would have to satisfy far more stringent conditions.
Waivers to the ban would only be made if there would be "undue hardship," or if entry of the person would not pose a threat to the United States, and if entry would be in the national interest.
The US, Saudi Arabia and the UAE accuse Iran of destabilizing the Gulf region, involvement in the Syria and Yemen conflicts and increasing threats towards Israel.