1. Bankrupting Iran’s Empire of Terror
- Author:
- Nate Sibley
- Publication Date:
- 11-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Hamas’s surprise attack on Israel has left thousands of innocent people dead, set the stage for a bloody and protracted conflict in Gaza, and precipitated a crisis that threatens to engulf the Middle East in a devastating new conflict. To prevent further escalation, the United States needs to act swiftly to intensify economic pressure on the Islamic Republic of Iran and dismantle its terrorist financing networks. Though Iran has denied any involvement, Hamas could not have planned an operation of this scale without critical support from its chief state sponsor. Iran’s Islamic Revolutionary Guard Corps (IRGC) has devoted enormous resources to building up proxy terrorist organizations in order to encircle Israel. According to a 2020 US government estimate, the IRGC provides as much as $700 million to Lebanese Hezbollah and $100 million to Hamas and other Palestinian groups each year. So far, this strategy appears to be working. Hezbollah, the IRGC’s most powerful terrorist partner, is poised to attack from the north, while other Iranian proxies threaten Israel from within Syria and elsewhere. Israel’s newly cordial relations with its Arab neighbors—including its nascent détente with Saudi Arabia—hang precariously in the balance. President Joe Biden’s immediate response to the attacks rightly focused on delivering Israel the political backing and military assistance that it urgently needs. But as the overseer of the global financial system, the United States can also deploy its unique capabilities to constrict the Islamic Republic’s revenues and shut down its global terrorist financing networks. Whether the United States succeeds in doing so will shape events far beyond the Middle East. This conflict is not just another flare-up in a long-troubled region. It reflects an ongoing global realignment wherein powerful adversaries test American strength and resolve with growing coordination and assertiveness. As Russia wages war in Ukraine and Beijing watches carefully, the stakes call for nothing less than a major US endeavor to bankrupt the Islamic Republic’s empire of terror once and for all.
- Topic:
- Foreign Policy, Corruption, Terrorism, and Hamas
- Political Geography:
- Iran, Middle East, Israel, and Palestine