Strategic Survey 2006: The Annual Review of World Affairs assesses trends in all continents and also provides analysis and facts on key themes such as the continuing campaign against terror, the geopolitical impact of the oil price rise and the global refugee situation. The great strategic challenge that emerged during the year was the sharpening of the complex regional Sunni–Shia rivalry that Iraq’s instability, Iran’s renaissance and Sunni-Arab malaise has fostered. At the same time, a major struggle is being fought throughout the Islamic world among conservative, liberal and extremist forces who all want to occupy the same political ground.