Iran’s Terrible, Horrible, Very Bad Year

There is no shortage of misery in the Middle East today. As the region marked the one-year anniversary of Hamas’s October 7 massacre, Israel mourned the murder of around 1,200 Israelis and worried about the fate of the remaining 100 hostages held by Hamas. Tens of thousands of Palestinians have been killed in the subsequent war, hundreds of thousands are currently homeless, and much of Gaza lies in ruins. Lebanon, too, is now devolving into a war zone.

Often overlooked amid all this misery is Iran, which is also having a terrible, horrible, very bad year. But unlike most of the other actors here, it has only itself to blame.

Consider where Iran was strategically on October 6, 2023. The United States, torn between competing demands for its military forces, was looking to reduce its military presence in the Middle East. That brought Iran closer than ever to achieving one of its long-term goals: ridding the region of U.S. influence. Israel, meanwhile, was tearing itself apart at home over controversial judicial reforms. Iran had suffered a strategic blow a few years prior with the passage of the Abraham Accords, which promoted Israel-Arab ties, but Tehran had arguably countered this in part by forging closer military ties to Moscow. True, Iran remained under significant sanctions, but the Biden administration unfroze some $6 billion in Iranian funds in exchange for freeing American prisoners.

Often overlooked amid all the misery in the Middle East is Iran, which is also having a terrible, horrible, very bad year.

Now consider where Iran is just a year later. Hamas, an Iranian proxy, has been decimated. Israel has shown that it can reach into a VIP guest house in Tehran to kill Hamas’s leaders. Hezbollah, the crown jewel of Iran’s proxy network, has been mauled to the point where Iran needs to strike Israel on the group’s behalf, rather than vice versa. Israel’s fractured political spectrum doesn’t agree on much, but it is united when it comes to making Iran pay for its missile attacks on the country. The Abraham Accords—which normalized Israel’s relationship with the United Arab Emirates and Bahrain—are strained but remain intact, and Saudi-Israeli normalization remains possible in the longer term, even if it is not in the cards right now. In fact, despite the violence, it is easier to fly to Tel Aviv from Dubai than from many European cities. And the U.S. military is once again surging into the region. Further Western sanctions relief—in this geopolitical climate—is currently off the table.

While Israel faces strategic problems of its own, at least Israeli Prime Minister Benjamin Netanyahu can argue that he did not start this war. By contrast, it is an open question to what extent Iran’s leaders helped plan the October 7 attack and set the region aflame in the process. Even if Iran was merely caught up in one of its proxies going rogue, it certainly did have a direct role in the missile barrages against Israel and, by extension, the retaliatory strikes that followed.

Perhaps the silver lining for Iran here is that it could have been worse. Tehran’s missile attacks—in April and again in October—failed to kill Israelis or cause significant damage. Had they done that, Israel’s retaliation would likely have been significantly more robust.

But this gets to the crux: Iran’s tolerance for risk is growing. Firing hundreds of ballistic missiles at a militarily superior adversary is a dangerous game. Firing them while repeatedly calling for the annihilation of a likely nuclear-armed, militarily superior, superpower-backed state with a right-wing government inclined to hit back hard is a potentially suicidal gamble.

That’s not the only thing Iran has done over the past year that was so risky that it could have threatened the regime’s stability itself, had it not been for Tehran’s incompetence. Iran reportedly tried to kill former U.S. President Donald Trump and other former senior Trump administration officials in retaliation for the killing of Iranian Quds Force leader Qassem Suleimani. Thankfully, those plots were foiled. But the attempt itself was a huge risk, especially given that Trump is a current candidate for the presidency and known for holding grievances. Indeed, after being briefed about the attempted assassination, Trump threatened to “blow [Iran’s] largest cities and the country itself to smithereens” if he gets back to the White House and Iran tried a similar ploy.

But whereas trying to assassinate a former—and potentially future—U.S. president on American soil is a gutsy move, imagine what would happen if such a plot actually succeeds. Republicans—many of whom are already pretty hawkish on Iran—would likely be calling for blood. Democrats would not likely let the killing of a former U.S. president go unpunished. Indeed, if one thing could upend the post-Iraq, post-Afghanistan received wisdom of eschewing regime change in the Middle East, killing a former president could be it. In short, if the Iranian regime survives this war, it will be thanks to luck and its own incompetence.

Of course, from the Iranian perspective, its actions—or at least its missile strikes—were driven by strategic necessities to reestablish deterrence after a series of Israeli and U.S. affronts to its sovereignty, such as striking Iranian diplomatic facilities in Syria and killing Islamic Revolutionary Guard Corps leaders. But there is little evidence that Iranian actions are having any deterrent effect whatsoever. If anything, Israeli leaders are talking even more openly than before about regime change in Tehran and even more adamantly about destroying the Iranian nuclear program.

The wisest option for Iran right now would be to retreat to the shadows, rebuild its proxy network, and fight another day.

Strategically, the wisest option for Iran right now would be to retreat to the shadows, rebuild its proxy network, and fight another day. After all, it will take time to rebuild Hamas and Hezbollah into the formidable fighting forces they once were. At the same time, Israel’s ties to its Arab neighbors and the West are already frayed, thanks to the bloodshed of the Gaza campaign and the Netanyahu administration’s unwillingness to commit to any sort of Palestinian state—a win, if a Pyrrhic one, for Iran. Pulling back also leaves open the prospect of some sort of future deal with the West over the medium term—which Iranian President Masoud Pezeshkian says he wants and even Trump says he’s open to supporting. That is not, however, what Iran seems intent on doing. Whether it’s because of Iranian domestic politics, concerns about losing face on the international stage, or simply a desire for revenge, the regime looks intent on doubling down. In a rare Friday prayer speech, Iranian Supreme Leader Ali Khamenei—with a rifle by his side in case anyone missed the point—praised the October 7 massacre and promised that Iran “won’t back down. Israel won’t last long.”

Iran’s seeming unwillingness to reverse course has important implications for the United States and the West’s approach to Iran. It raises the question of whether threatening Iran with further costs will be sufficient to force a change in direction. The United States and its European partners can sanction Iran all they want; Israel could bomb Iranian oil fields. But it may not change Iranian behavior.

If deterrence by punishment won’t work, then the United States and the West will need to resort to deterrence by denial—destroying Iran’s ability to attack Israel and aid its proxies. That would be hard to do, since it requires destroying significant chunks of Iran’s military capabilities rather than simply threatening to inflict pain. But if the Iranian regime seems intent on escalating, then the United States and its allies may have no other choice.

And if that happens, while this year may have been a terrible one for Iran, next year might be even worse.

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