The ongoing conflict in Iraq and Syria is just one chapter of the so-called “global war on terrorism”, which is a growing business intended to be permanent. This “disaster capitalism” benefits various sides in Syria and abroad and is largely engineered and sustained by the US government. The Islamic State in Iraq and Syria like al Qaeda is a CIA inspired phenomenon, at once supported and feared by the Gulf monarchies and used as a weapon against statist powers in the region. This article reviews the regional scenario and suggests some alternative policies to end terrorism and restore peace.