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In retaliation for the damage done to the them in 2395, the Borg launch a devastating attack on the Confederation powers. They are eventually repelled but Starfleet suffers great losses as it was already recovering from the short conflict with the Romulans a month earlier.
The existance of the highly secretive Starfleet Secret Service is leaked to media across the Federation.
A Romulan intelligence mission discovers a Dominion plan to attack the UCIP powers. The Federation and Klingons, along with the Romulans, decide to launch a pre-emptive strike both in the Gamma Quadrant and along the Cardassian border.
The weight of Dominion forces in the Gamma Quadrant cause the UCIP powers to abandon their colonies there and return to within their own borders. The wormhole at Deep Space Nine is immediately mined again to prevent any further Dominion forces reaching the Alpha Quadrant.
The Ferengi Alliance, Tholian Assembly and Hydran Kingdom enter the new Dominion war on the side of the Confederation powers.
Dominion forces in the Alpha Quadrant fall back under the assault from the UCIP powers and set course for the Gamma Quadrant for a journey that will take many years.
Starfleet disables the minefield that had been established at Deep Space Nine to prevent further Dominion reinforcements from using the Bajoran wormhole and take the war to the Gamma Quadrant liberating their colonies and facilities.
The Dominion, defeated, retreats and isolates itself, sealing its borders and entering into no communication. Back in the Alpha Quadrant, the UCIP powers withdraw from Cardassian territory to allow them to rebuild after their devastating defeat.