Washington is "prepared to react" if Tehran launches an attack to mark the first anniversary of the killing of powerful Iranian Gen Qassem Suleimani, the head of US forces in the Middle East said.
"We are prepared to defend ourselves, our friends and partners in the region, and we're prepared to react if necessary," Gen Kenneth McKenzie, who heads the US Central Command, said.
I talk to my commanders about it every day and I think we will be ready
He was touring the region weeks before the first anniversary of the January 3 killing of Suleimani by a US drone strike near Baghdad airport.
"My assessment is we are in a very good position and we'll be prepared for anything the Iranians or their proxies acting for them might choose to do," Gen McKenzie, a four-star marine general, said from an undisclosed location in the region.
The commander said he had recently visited Baghdad, where he met the head of the anti-extremist coalition, US Gen Paul Calvert, as well as the Iraqi army chief of staff, Gen Abdul Amir Yarallah.
Gen McKenzie said he had been to Syria to meet American forces stationed in the small southern base at Al Tanf, near the border between Jordan and Iraq.
In an apparent sign of US military leaders' concerns about Iranian intentions after Suleimani's killing, Gen McKenzie's current tour was not announced in advance.
Similarly, last week's visits by Gen Mark Milley, the chairman of the US Joint Chiefs of Staff, to Qatar, Saudi Arabia, the UAE, Israel and Afghanistan were kept secret until he had left the region.
"I talk to my commanders about it every day and I think we will be ready," Gen McKenzie said.
Even as the US Army continues troop withdrawals from Iraq and Afghanistan ordered by President Donald Trump – with a goal of drawing down to 2,500 in each country by January 15 – the Pentagon has substantially reinforced its posture around Iraq to dissuade Iran from launching any attack.
The aircraft carrier USS Nimitz has been patrolling Gulf waters since late November, and two American B-52 bombers recently flew over the region in a demonstration of strength clearly aimed at Iran and its allies.
Still, a volley of rockets exploded on Sunday near the US embassy in Baghdad, causing material damage but no casualties, according to Iraqi security forces.
It was the third attack on American military and diplomatic installations in Iraq since an indefinite truce was agreed with pro-Iran groups in October.
Russia's Muslim Heartlands
Dominic Rubin, Oxford
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer