Economic reform is key to the future of a region which needs to diversify away from dependency on oil, or a reliance on international funding. There has been both resistance and progress so far.
Bahrain's oil sector is relatively small for the Gulf. So, the kingdom has been an early adopter of economic diversification and has harnessed the advantage of a well-developed education sector.
Legislation to fund the American military and intelligence services will include requirements that Israeli defence firms be involved in sensitive projects and that classified information be shared
Even if diplomatic progress continues, the Strait could be closed again. As a result, the geopolitical risk premium attached to Gulf energy exports is unlikely to disappear entirely.