The India-Middle East-Europe Economic Corridor (IMEC) initiative, aimed at enhancing global trade and transportation, faces challenges due to the ongoing Gaza conflict. It offers significant economic benefits and strategic opportunities for participating nations, particularly Israel, which seeks to redefine its geopolitical role. The completion of IMEC, with support from the U.S. and EU, could reduce logistics costs and time while fostering connectivity between South Asia, the Gulf, and Europe—countering China’s influence. However, regional instability necessitates swift stabilization efforts from Israel to realize this transformative project. Enhanced diplomatic management can still propel IMEC forward without requiring full normalization with Saudi Arabia.