Iran in a Quarter Century: Clash Between the ‘Revolution’ and the State

An Iranian woman walks by the former US embassy in Tehran. (AFP)
An Iranian woman walks by the former US embassy in Tehran. (AFP)
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Iran in a Quarter Century: Clash Between the ‘Revolution’ and the State

An Iranian woman walks by the former US embassy in Tehran. (AFP)
An Iranian woman walks by the former US embassy in Tehran. (AFP)

For the past quarter century, Iran endured a bitter conflict between the ideological aspects of the “revolution” and the strategic view aimed at protecting the state and its interests in a changing world.

Despite hopes for radical change, attempts to achieve reform collided with resistance from the traditional centers of power, preventing real reconciliation between the contradiction in the principles of the “revolution” and the demands of national reforms, or at least achieving some form of sustainable agreement between these opposing movements.

Since 2000, Iran witnessed the election of five presidents with limited jurisdiction, and five parliamentary elections, which were dominated by either of the main reformist and conservative movements, amid the ongoing debate over the nature of rule, its agenda and priorities.

Since the 1979 revolution, the jurisdiction of the parliament and government has been fully under the control of the decision-making centers in the country, with Supreme Leader Ali Khamenei at the top of the pyramid. The supreme leader enjoys almost absolute power, making him above all state institutions.

Meanwhile, the role of the military and political institutions, such as the Iranian Revolutionary Guards Corps (IRGC) and Guardian Council, expanded as they maintained their role in protecting the ideological principles of the ruling system. The system is based on a constitution that is in turn based on the Wilayat al-Faqih. These institutions are the main tools for preserving the identity of the “Islamic Republic” and bolstering its position that is hostile to the West.

Some 45 years after its “Islamic Revolution”, Iran has yet to reconcile the contradictions between its principles and national interests. (Getty Images)

Khatami and shift in the conflict

The beginning of the new millennium in Iran coincided with a decisive moment in reformist President Mohammed Khatami’s term (1997-2005). The period was marked with the intensification of the confrontation between the reformists and conservatives. The latter sought to obstruct reforms pursued by Khatami, especially in civil freedoms and freedom of expression.

The non-elected institutions that are under Khamenei’s direct supervision, such as the Guardian Council and judiciary, played a decisive role in obstructing reform measures, creating challenges for the reformists in achieving their political and social agendas.

Khatami’s term in office witnessed a major shift in the clash between the supporters of the ideology of the revolution and those calling for achieving strategic interests. He believed that the reforms were a strategic need to secure the continuity of the system of rule and its ability to adapt to internal and external changes. His critics, however, believed that his approach threatened the very foundations of the Wilayat al-Faqih.

Iran worked on improving its relations with the West and boosting its national identity through the Dialogue Among Civilizations, but the September 11, 2001, attacks and the US invasion of Iraq in 2003 were a blow to these efforts.

Iran saw in the collapse of Saddam Hussein’s regime in neighboring Iraq an opportunity to expand its ideological influence through supporting groups that were affiliated with Iran or were established within its territory. The nuclear file also undermined the Dialogue Among Civilizations initiative and efforts to build trust with the West, thereby increasing Iran’s isolation and regional and international tensions.

The Iranian Revolutionary Guards played a main role in the nuclear program and regional wars. (Khamenei’s official website)

IRGC and the regional role

The IRGC played a main role in issues related to the nuclear program, internal developments and the wars in Afghanistan and Iraq at the end of Khatami’s term.

In Afghanistan, the IRGC supported the United States in ousting the Taliban from power. In Iraq, the IRGC’s Quds Force led armed Iraqi factions in bolstering Iranian influence that persist to this day. Under General Qassem Soleimani’s leadership, the Quds Force also expanded its operations in Lebanon, helping establish a network that ran parallel to Iranian diplomacy in regional politics.

Iran felt threatened by the US’ bolstered military presence in the region, leading it to expand its security and strategic plans, starting with the nuclear and ballistic missiles programs.

In 2002, the discovery of secret nuclear facilities aroused suspicions among the international community about Iran’s nuclear ambitions and the possibility that it would pursue the production of a nuclear bomb. Amid the rising tensions, the West shifted its priorities towards Tehran to curbing its nuclear activities. Moreover, US officials, especially during President George W. Bush’s term, threatened on numerous occasions to use military force against Iran if it continued to pursue its nuclear ambitions.

Iran has bolstered its influence in the Middle East, stoking tensions with regional powers. (AP)

Nuclear file and internal tensions

The nuclear file has been a source of tension inside and outside Iran ever since. On the domestic level, it sparked debate about the country’s national priorities. The reformists sought to maintain Tehran’s international relations and ease tensions, while the conservatives clung on to their ideological principles.

In 2003, Tehran declared that it was voluntarily ending its uranium enrichment as part of the Amad Plan agreement reached with the European troika. In return, it received a pledge that the file would not be referred to the UN Security Council and that economic ties would be established with Europe. That same year, Iran heavily promoted Khamenei’s fatwa that barred the production, storing or use of nuclear weapons.

The US, however, remained suspicious of Iran’s intentions. It believed that agreements were not enough and it accused Iran of expanding its nuclear program, leading it to impose sanctions on its banks and energy sector. During the term of President Mahmoud Ahmedinejad, it referred the program to the Security Council – a move that was welcomed by the international community. The move prompted Iran to adopt an aggressive policy against western powers.

Iran has never officially declared that it was developing nuclear weapons. In 2007, US intelligence released a report that said Tehran had stopped its nuclear weapons development in 2003, helping to soften the American position against it.

Throughout Ahmedinejad’s eight years in office, tensions rose with the West over the nuclear program. Tehran raised its level of uranium enrichment to 20 percent while the president insisted on his country’s right to the peaceful use of nuclear technology. In return, crippling sanctions were imposed on its nuclear program, oil exports and economy.

Khamenei meets with veterans from the Iraqi-Iranian war. (EPA)

Iran and the ‘Arab Spring’

On the foreign level, Iran aspired to bolster relations with Arab, African and Latin American countries. It also backed armed groups like Hezbollah in Lebanon and Hamas.

With the eruption of the “Arab Spring” revolts, Iran sought to consolidate its influence in the Middle East, especially in Iraq, Syria, Lebanon and Yemen, stoking tensions with regional powers and Arab countries. Supporting Bashar al-Assad's regime in Syria was also a top priority for Ahmedinejad before he was succeeded by Hassan Rouhani.

On the domestic level, Iran went through a huge crisis after Ahmedinejad won the 2009 elections. The wave of “Green Movement” demonstrations erupted in protest against the elections results between Ahmedinejad, and reformist candidates Mir Hossein Moussavi and Mehdi Karroubi.

After Ahmedinejad’s term ended, Iran tried to ease tensions with the West. It took part in nuclear negotiations aimed at managing tensions with the major powers. Two years of negotiations led to the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), that suspended UN sanctions on Iran and lifted restrictions on its nuclear program.

The supreme leader played a pivotal role in the negotiations. He set red lines when it came to maintaining Iran’s right to uranium enrichment, lifting economic sanctions and refusing visits to military facilities by international inspectors.

Khamenei cautiously supported Rouhani’s negotiating team at the nuclear talks despite pressure from conservative movements. The negotiations struck a balance between ideology and strategic interests as Iran sought to maintain its “revolutionary” slogans, while adapting to international changes, confronting economic and security challenges and continuing to fund its regional activities to ensure that it remained a main player in the Middle East.

The IRGC continued to consolidate Iran’s influence in the region, especially in Syria and Iraq, and Khamenei threatened to expel American forces from the region. The tensions alarmed the American administration leading then President Donald Trump to pull Washington out of the nuclear deal in 2018.

Qassem Soleimani. (Tasnim)

Patience in handling pressure

In confronting Trump’s “maximum pressure” campaign, including preventing Iran from selling oil, Tehran adopted a policy of “walking on the edge of the abyss” and of “strategic patience.” Regional tensions also spiked with the IRGC seizing oil tankers after Tehran threatened to block oil shipping lanes. Trump consequently designated the IRGC as terrorist.

Trump would also order the killing of Quds Forces commander Soleimani in Baghdad in January 2020. The move took Iranian-American tensions to a whole new level and threatened to spark a direct war between the two countries.

In a leaked 2021 recording, then foreign minister Mohammed Javad Zarif called for striking a balance between foreign policy and the policy on the field, a reference to the Quds Force that leads the IRGC’s foreign operations. The recordings exposed an internal rift between the ideological and pragmatic movements in Iran, with the latter wanting to achieve interests, such as the lifting of sanctions.

Zarif defended his conviction that diplomatic work relies on the situation on the ground and vice versa, meaning diplomacy can grant “international legitimacy” to achievements on the field.

When US President Joe Biden came to office, Khamenei used his influence to support the IRGC and showed limited leniency in managing tensions through new nuclear negotiations. Biden tried to return to the nuclear pact with Tehran, but Iran’s unprecedented nuclear measures adopted by conservative late President Ebrahim Raisi and Russia’s war on Ukraine thwarted diplomacy.

18 December 2024, Iran, Tehran: Iran's President Masoud Pezeshkian speaks during the Cabinet meeting in Tehran. (Iranian Presidency/dpa)

Raisi and the ‘revolutionary government’

Under Raisi, Tehran pursued diplomacy at the negotiating table with the West, but the talks never made it to the finish line.

His term in office was cut short by his death in a helicopter crash in May 2024. His time in power was marked by loyalty to the supreme leader’s view of forming a “revolutionary government” and limiting state power to conservatives.

Raisi effectively followed in the same footsteps as Ahmedinejad: Tehran sought rapprochement with regional forces, while hoping to circumvent sanctions and speed up its nuclear activities.

Raisi was succeeded by Masoud Pezeshkian, who was backed reformists. He pledged to maintain the policy of turning to the east and bolstering relations with China and Russia. He also sought to lift sanctions on Iran by returning to nuclear negotiations.

On the regional level, Tehran’s “shadow war” with Israel came out to the open and the two sides traded direct blows. Following Raisi’s death, Iran continued to suffer more setbacks, notably the collapse of the Assad regime in Syria and the weakening of Hezbollah and Hamas’ roles. These developments will weaken the IRGC’s regional role, but it could seek to compensate for its losses in other regions, even inside Iran itself.

Pezeshkian and internal reconciliation

Pezeshkian’s presidency is seen as an opportunity to achieve internal reconciliation in Iran at a critical time when the people are preoccupied with the issue of Khamenei’s successor. Iran is unlikely to introduce radical change to its relations with the West and Pezeshkian may be granted limited jurisdiction in the nuclear negotiations.

Soon after Trump’s re-election as president, Pezeshkian stressed the need to manage relations and the confrontation with the US. He said his government will follow the strategy of the ruling system.

Pezeshkian will likely receive the backing of the supreme leader and IRGC to reach a settlement that would ease pressure on Iran. This does not necessarily mean that Iran will be moving away from the edge of the abyss. On the contrary, it could reflect an attempt to widen the margin for maneuver amid the tensions with the West. Iran is expected to follow this approach in the near future or at least when the identity of the third supreme leader is revealed.



From Wells to Budget: Where Does Libya’s Oil Money Go?

Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)
Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)
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From Wells to Budget: Where Does Libya’s Oil Money Go?

Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)
Tugboat Al-Hani begins operations at Zueitina port (National Oil Corporation)

Libya depends on oil for nearly 98% of its income. Yet a central question persists: How are those revenues collected and spent in a country divided between rival governments? And why do Libyans complain of poverty when their country holds Africa’s largest oil reserves and produces and exports about 1.4 million barrels a day?

The process starts with the National Oil Corporation, which collects proceeds from crude oil and gas sales in US dollars and deposits them in accounts at the Libyan Foreign Bank. The money is then transferred to the Central Bank of Libya's accounts in Tripoli, recorded as state budget sovereign revenue, and converted into Libyan dinars.

The dollar trades at 6.36 dinars at the official rate, compared with 9.12 on the parallel market.

The Finance Ministry in Tripoli then issues spending authorizations under approved financial arrangements, after which the central bank releases funds to ministries and other state bodies through the main budget chapters.

Libya’s oil export revenues have swung sharply in recent years, ranging between $18 billion and $22 billion. They rose to about $18 billion in the first half of this year, nearly double the level in the same period last year, according to the Economy Ministry in the interim Government of National Unity.

Libyan oil expert Mohamed al-Shahati attributed the increase during that period to the war involving Iran.

Where is the breakdown?

Economists say Libya’s dependence on oil as its near-exclusive source of income lies at the heart of the crisis.

Ayoub al-Farsi, an economics professor at the University of Benghazi, said Libya showed how excessive reliance on natural resources could turn into a complex financial crisis when combined with political fragmentation and a lack of economic diversification.

“The Libyan economy is a clear example of how excessive dependence on natural resources can become a complex financial crisis,” he said, adding that political fragmentation and the absence of diversification had created conditions that directly affected people’s lives.

Al-Farsi, a member of the Central Bank of Libya’s Monetary Policy Committee, said the economy was built around a rentier-state model that depended almost entirely on oil exports to fund the treasury and provide foreign currency.

That dependence, he told Asharq Al-Awsat, had created deep structural distortions.

Agriculture and industry had been marginalized, the state bureaucracy had expanded to absorb workers into unproductive public-sector jobs, and the country had grown heavily dependent on imports for most consumer goods, he said.

Industrial activity remains limited, largely confined to the private sector and small-scale production. Critics also point to a market dominated by a small number of traders and importers, helping imported goods crowd out local production.

At protests across Libyan cities, the question is often the same: Where is the oil money going? Why are people struggling in an energy-producing country?

Al-Shahati said part of the answer lies in the difference between the value of the oil Libya produces and the amount that actually reaches the state treasury.

“Not every barrel produced in Libya is converted directly into a dollar entering the public treasury, because foreign partners have a share,” he told Asharq Al-Awsat.

Foreign companies have become production partners under various contractual arrangements, he said.

He also pointed to a stark contradiction: Libya produces oil, yet depends heavily on imports of gasoline, diesel, and other petroleum products to meet domestic demand.

That means a growing share of the country’s resources is converted into foreign currency to pay for fuel imports.

Al-Shahati said another problem was the lack of a regularly published, unified, and easy-to-read account that answers basic questions, such as: What was the total value of the oil produced? How much went to foreign partners? How much was exported for the state? How much went to the domestic market? And how much net revenue was actually available for public spending?

“The figures in circulation provide parts of the picture,” he said, “but they do not always show the full flow of revenues from the wellhead to the state’s public accounts.”

Libya’s oil fields are concentrated mainly in the eastern Sirte Basin, which holds about 82% of its oil reserves, as well as in the Murzuq Basin in the southwest and offshore areas along the coast.

Fuel and power crises

Those weaknesses in the oil revenue chain are unfolding as Libya grapples with a severe electricity crisis.

The country has suffered several “blackouts” in recent days, with some areas going without electricity for more than 17 hours a day.

Researcher Ezzedine Mokhtar sees the power cuts as one part of a wider pattern of recurring financial failures, including fuel shortages.

He blamed the hardship facing many Libyans on “corruption” and “unlimited spending” by two rival governments competing for power in the country’s east and west.

He also cited “oil smuggling through Arkenu, whose revenues go to specific individuals rather than the state treasury.”

Mokhtar said Libya’s subsidy system was another core problem, with more than 60% of the country’s budget going to fuel subsidies.

He called on the Tripoli government to phase out those subsidies gradually and to draw up a national plan to develop the workforce.

“We have no industrial skills in anything,” he said. “We import everything — yogurt, dairy products, fruit, vegetables, frozen fish, and even underwear. Everything comes from abroad.”

Libya ranks 10th globally in proven oil reserves, with about 48.3 billion barrels, according to Worldometer.

The UN Panel of Experts said in its latest report on Libya, covering October 2024 to February 2026, that Arkenu had moved at least $3 billion in oil revenues to bank accounts outside Libya between January 2024 and November 2025.

According to the report, Arkenu was established in 2023 as a private company and is indirectly controlled by Saddam Haftar, deputy commander-in-chief of the Libyan National Army. It faces accusations of “oil smuggling.”

Reuters previously investigated the company and concluded, based on shipping documents, London Stock Exchange Group data, and information from Kpler, that some oil revenues were being diverted away from the Central Bank of Libya.

How are revenues distributed?

Oil revenues are distributed across the four main chapters of the state budget, according to experts and economists.

Chapter One, salaries and wages, takes the largest share. It covers public-sector employees across eastern, western, and southern Libya through the unified national identification number system.

Chapter Two covers operating expenses for ministries and public institutions.

Chapter Three covers subsidies, including fuel, water, and electricity.

Chapter Four covers development and projects, including infrastructure, as well as allocations to the National Oil Corporation to sustain and increase production.

Al-Shahati said 26% of oil revenues went toward importing fuel products, equivalent to about $7 billion if crude traded at $70 a barrel.

This year, he said, the figure could rise to between $8 billion and $9 billion because oil prices had climbed above $85 a barrel and the gap between crude prices and diesel and gasoline prices had widened amid shortages.

He also pointed to higher domestic consumption driven by economic growth and a rise in smuggling.

A second problem, al-Shahati said, is the absence of an approved national budget, which would make it possible to determine how spending should be allocated among population groups and regions.

“What is clear is that the main cities control most spending,” he said.

He also pointed to “a large and obvious imbalance” in salaries across Libya’s three regions, job grades, and types of employment.

Those gaps, he said, risk widening financial divisions between social groups.

Even an agreement to unify development spending did not appear to be properly implemented because there were no clear standards and no comprehensive budget.

“There are no criteria for distributing oil revenues,” al-Shahati said. “The distribution process is random and unsustainable.”

Libya fell to 177th out of 182 countries in the 2025 Corruption Perceptions Index, from 173rd out of 180 countries in 2024, reflecting worsening corruption and no tangible improvement over the past two years.

Pressure on the local economy

A report by UN Secretary-General Antonio Guterres on Libya highlighted deep structural strains in the economy, driven by high public spending, near-total dependence on oil and gas revenues, and mounting pressure from food, fuel, and electricity prices.

The report, submitted to the UN Security Council on Aug. 17, covers the period from April 1 to July 28.

Citing the International Monetary Fund, it said Libya’s fiscal deficit reached 30% of gross domestic product last year, while public debt climbed to 146% of GDP.

Inflation also rose into double digits, eroding purchasing power.

The UN report noted unjustified increases in fuel consumption by military and security agencies and the energy sector, as well as repeated double purchasing.

The cost of institutional division

Libya’s political and institutional split and the presence of multiple authorities have made the economic crisis worse, al-Farsi said.

The distortions, he said, were no longer merely structural.

They had created parallel public finances and pushed consumer spending higher to meet the demands of rival authorities, sending salaries and subsidies to unprecedented levels.

Repeated shutdowns of oil fields in previous years, combined with lower actual revenues, pushed financial authorities toward deficit financing and higher public debt, al-Farsi said.

That flooded the market with money without a corresponding rise in domestic production.

Oil revenues reached $21.9 billion in 2025, according to the National Oil Corporation, up from $18.6 billion in 2024, an increase of 15%.

Al-Farsi said the deterioration in public finances had left monetary authorities in a difficult position and forced them into emergency measures to protect reserves and contain the deficit.

The result, he said, was a weaker national currency, liquidity shortages and a collapse in confidence.

Development tools had also been paralyzed.

“Monetary policy shifted from an instrument for stimulating growth and investment into a tool for managing daily crises,” he said.

Why has the crisis not been solved?

Economists point to several reasons.

Al-Shahati put “corruption spreading on an unprecedented scale” near the top of the list.

“Corruption is no longer confined to the margins,” he said. “It has come to dominate the core of public finances in key sectors, obstructing any attempt at reform.”

He also blamed the absence of an institutional vision following the breakdown of middle management, which had once linked fiscal and monetary policy to economic realities and provided unified political backing.

Policies, he said, had become detached from the economy and lost their ability to restore balance.

Conventional reforms that had worked elsewhere would not work in Libya, al-Shahati said, because the country lacked a central political authority capable of building an institutional vision and curbing corruption that had spread through both the state and private sector.

Al-Farsi said Libya could not escape its fiscal and monetary crisis without addressing the roots of the problem.

That meant unifying the management of public finances, curbing government spending, and launching genuine structural reforms that would gradually shift Libya from consuming oil rents to building a diversified economy.

Mokhtar also called on the Tripoli government to develop a strategic plan to make better use of human resources and support small and medium-sized industries.

For him, breaking Libya’s dependence on oil revenues is part of the way out.

Masoud Suleiman, chairman of Libya’s National Oil Corporation, said in media remarks last week that the country needed between $30 billion and $40 billion in investment to develop untapped oil and gas resources.

The corporation, he said, aims to raise production to 2 million barrels a day by 2030.


Bandar Abbas, Iran’s Trade Hub on Hormuz Thrust to Frontline of US War

Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)
Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)
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Bandar Abbas, Iran’s Trade Hub on Hormuz Thrust to Frontline of US War

Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)
Fishermen check their nets and small boats on the seashore in the port city of Bandar Abbas, in southern Iran on August 10, 2026. (AFP)

With a long shoreline on the Strait of Hormuz, Iran's southern trade hub of Bandar Abbas has found itself at the frontlines of the war with the United States, with residents struggling to revive livelihoods battered by months of fighting.

Like elsewhere in Iran, economic strain has squeezed households since US-Israeli strikes triggered the Middle East war on February 28. But unlike much of the country, the port city of around half a million people has remained exposed to fighting even after an April 8 ceasefire brought relief elsewhere.

But despite a lull in hostilities in July, residents still feel squeezed. Saeed Tajik, 42, used to work at a shipyard before losing his job and turning to driving a taxi.

"The prices of housing and food have become extremely high. Almost all the basics -- rice, yoghurt, and oil -- have doubled," said Tajik.

Fuel shortages have long been common in southern Iran, where authorities restrict supplies in an effort to curb widespread fuel smuggling.

But now, "the queues have become longer ... it happens that we wait in the long line for fuel only to get told 'there is none' upon arriving," Tajik said as he drove past a station where motorists waited under the punishing summer heat.

Hormuz has emerged as a central flashpoint after an April ceasefire and June framework deal failed to resolve disagreements between Washington and Tehran over the future management of the strait.

During the war, US strikes hit bridges, highways and railway infrastructure around Bandar Abbas until mid-July, in what analysts saw as attempts to cut off the city and disrupt Iranian military logistics in the south.

- 'Nothing left' -

Inside the city, under a towering concrete statue of two armed men with their arms trained towards Hormuz waters, economic strains play out in long queues snaking outside petrol stations and soaring prices squeezing shoppers in local markets.

The city's repeatedly hit airport remained largely closed until August 15, leaving travelers facing arduous road journeys, sometimes combined with flights and boat crossings.

Outside the city, construction crews still toil under the sweltering summer sun to repair the Gachin bridge, split by a US strike, as cars rumble along a dusty detour below.

Along the waterfront, traditional wooden vessels known as lenjes sit moored alongside fishing and commercial boats, part of a centuries-old trading network linking southern Iran with Arab states across the Gulf.

Arash Tondro, 45, used his lenj to carry Iranian fresh and dried fruit to the United Arab Emirates and return with household goods and other imports.

"My income dropped to zero at the beginning of the war," said Tondro, who later rerouted some trade through Oman's Khasab port as regional seaways were disrupted and "many of the lenjes were hit by drones".

After the UAE suspended trade with Iran on Tuesday following a missile attack on a ship that Tehran denied carrying out, Tondro said he was again unsure how his work would be impacted.

"People in the south mostly rely on trade or fishing. If you take the sea and trade away from them, there is practically nothing left. We don't have agriculture here; whatever there is comes from the sea," he said.

- 'No sales' -

As night falls and August's oppressive heat begins to ease, fish vendors set up along a busy street, laying out shark, tuna and shrimp as the smell of the day's catch hangs in the humid air.

Among them is 22-year-old Anoush Mallah, who recently moved onto the street after soaring rents forced him to close his shop in one of the city's bazaars.

"Business has been terrible since the war started. There are no sales, it's very weak," he told AFP.

"People are short of money. The fishermen aren't going fishing either."

Many fishermen around Bandar Abbas only began returning to sea in recent weeks, after months ashore for fear of being caught in the crossfire of US-Iran fighting.

Diplomatic efforts have so far failed to end the war. For Mallah, the uncertainty only adds to the strain.

"Let it (the war) start and get some result; right now, we're just left in limbo," he said.


The Ethiopian Dam Dispute and Egypt’s ‘Right to Self-Defense’

Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry
Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry
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The Ethiopian Dam Dispute and Egypt’s ‘Right to Self-Defense’

Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry
Egyptian Foreign Minister Badr Abdelatty. Photo: Foreign Ministry

Over the past two weeks, Egypt has repeatedly stressed its right to prevent any actions by Addis Ababa on the Nile River that could harm its water interests, stressing that it possesses the “right to self-defense” over Ethiopia’s Grand Ethiopian Renaissance Dam (GERD).

According to experts who spoke to Asharq Al-Awsat, Egypt’s signaling means that it “will not hesitate to use all legitimate means to safeguard its water security.”

They explained that the message is a stern warning to Ethiopia and suggests that Cairo is seeking to shift from a policy of protesting Ethiopian measures to preventive deterrence, aimed at stopping the establishment of a new status quo on the Nile.

New Egyptian Warning

Egyptian Foreign Minister Badr Abdelatty said that “Egypt will not allow the construction of additional dams ... that affect its water interests,” stressing Cairo’s commitment to a legally binding agreement that guarantees its water rights.

In a television interview on Wednesday evening, Abdelatty said that Egypt does not oppose African countries’ right to development, noting Cairo’s participation in dam and infrastructure projects in several Nile Basin states. However, he stressed the need to balance the right to development with the rights of downstream countries.

He also underscored Egypt’s commitment to protecting its water interests. “We have the right to self-defense to protect our interests and water security,” said the minister. “We will not accept any agreement regarding the Nile River unless it is legally binding,” he reiterated.

Mohamed Hegazy, a member of the Egyptian Council for Foreign Affairs and a former assistant foreign minister, says the right of self-defense is protected under international law after all peaceful means have been exhausted.

According to Hegazy, the core message is that Cairo still prefers agreement and negotiation, but it no longer accepts using negotiations to impose a fait accompli.

He argued that the most significant aspect of Abdelatty’s statements is that they send three simultaneous messages - Rejection of unilateral measures, rejection of additional dams, and insistence on the right of self-defense to protect water security.

Hussein El-Behairy, an African affairs expert at the National Center for Middle East Studies, said the minister’s recent statements reaffirm Egypt’s right to defend its historical and water rights in the Nile by whatever means the Egyptian state deems appropriate to preserve what Egyptians view as a matter of life and death.

Ethiopia’s Grand Ethiopian Renaissance Dam (GERD). Reuters

Escalating Egyptian Position

This is the third time Egypt has signaled the possibility of using its “right to self-defense” and preventing dam construction on the Nile.

On August 16, Egypt’s state news agency quoted an unnamed Egyptian official as saying that Cairo “will neither accept nor allow any party to control the flow of Nile waters to downstream countries,” stressing that the Egyptian state possesses multiple tools capable of protecting its people’s interests in the Nile.

The statement came in response to remarks attributed to Ethiopian Minister of Water and Energy Habtamu Itefa concerning the construction of additional dams on the Nile and control over water flows to downstream states, namely Egypt and Sudan.

Earlier, on August 4, Egyptian Minister of Water Resources and Irrigation Hani Sewilam stated during a press conference that Egypt “will not allow the construction of new Ethiopian dams on the Nile River.”

He said: “It is well known that Ethiopia has plans to build additional dams, but will the Egyptian state allow this? No.”

According to Hegazy, the ball is now in Ethiopia’s court. If Addis Ababa agrees to resume serious negotiations leading to a legally binding agreement on GERD, the crisis can be contained.

However, if Ethiopia continues to create new realities on the Nile, the scope for a diplomatic solution will narrow, making risk management and deterrence a more prominent part of Egypt’s strategy.

El-Behairy does not expect the escalation to pave the way for new negotiations on GERD unless the Ethiopian government is willing to make concessions in response to Cairo’s demands. These demands include reaching a legally binding agreement that guarantees Egypt’s water rights during periods of drought and severe drought, and providing Egypt with information regarding the operation of the dam in a manner that does not harm its water interests.