Seven Ways Iran Spends its Money in the Syrian War

Fighters run for cover as a tank shell explodes during heavy fighting in Syria. (Reuters)
Fighters run for cover as a tank shell explodes during heavy fighting in Syria. (Reuters)
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Seven Ways Iran Spends its Money in the Syrian War

Fighters run for cover as a tank shell explodes during heavy fighting in Syria. (Reuters)
Fighters run for cover as a tank shell explodes during heavy fighting in Syria. (Reuters)

“Get out of Syria! Think about our plight!” This was one of the slogans canted during last December’s nationwide protests in more than 100 Iranian cities.

Seven years ago when Iran started getting involved in the Syrian conflict the narrative promoted by the authorities was that Iran was going there to protect “the Shi’ite holy shrines” against attacks by “Sunni extremists”, a defensive strategy, and would not become involved in the broader struggle for power between regime leader Bashar al-Assad and his opponents. Falling victim to mission creep, however, Iran was quickly re-cast as the chief guarantor of the survival of the regime, an objective labeled as “vital” for Iran’s own security.

Russia’s involvement two years after the Syrian conflict had started, and President Vladimir Putin’s quick emergence as the key setter of agenda in Syria, punctured the myth of Iran as the key player in Syria. That, in turn, has inspired complaints, at first sotto voce, but more recently openly, about the reasons for what Islamic Majlis member Mahmoud Sadeqi in Tehran has dubbed “our Syrian adventure.”

President Hassan Rouhani has tried to re-tell the Syrian story by claiming that Iran was showing a high degree of altruism by helping “our Syrian brothers in need.”

“Even in harsh circumstances we cut our own needs in order to help our Syrian brothers,” he said last month.

With the high number of human losses sustained by Iran and “allies” including Lebanese, Pakistani and Afghan mercenaries admitted officially, the question that people now ask is focused on the financial cost of “our Syrian adventure.”

Iran’s financial commitments in Syria could be divided into seven categories.

The first consists of the value of arms and other military materiel supplied by Iran to forces supporting Assad. These include Iranian-made surface-to-surface missiles modeled on the Chinese Silkworms originally developed for use at sea. Another major item consists of armored cars of which Iran is reported to have delivered over 400 to replace losses sustained by Assad’s elite 4th Armored Division. According to estimates by researchers in Iran, Iran has also supplied Assad with over 500 pieces of Russian-made heavy artillery for use against urban centers.

Because of many of the arms supplied to Syria come from Iran’s own stocks, often dating back to years, it is hard to put a price on them. It is even possible that Iran has tried to recycle its old arms as part of a broader plan to renew its arsenal of weapons.

However, some analysts, including Reza Saberi, claim that arms supplied by Iran could be valued at around $1.2 billion.

The second item on Iran’s expenses’ list in Syria consists of delivery of oil and petroleum products to Assad forces. This is done in the context of a credit line that Iran has opened for Syria. The most credible figure cited by the Iranian media puts the size of that “line” at between $2-3 billion a year. The total “credit line” allows for up to $6 billion a year and includes food and medical supplies which Iranian Foreign Minister Mohammed Javad Zarif has put at around $2.5 billion a year.

The third item in Iran’s “Syria expenses” list consists of what the central Bank of Iran calls “transfer funds”. This means Iran exporting a certain quantity of its own oil on behalf of Syria with the understanding that Syria will repay in due course in an interest-free arrangement.

According to Jesse Shahin, spokesman for the office of Staffan de Mistura, the United Nations’ Special emissary on Syria, the “transfer funds” amounts to Iran giving the Assad regime an average of $6 billion a year, sums largely spent on paying civil servants and the forces still more or less loyal to the regime.

The fourth item in Iran’s expenses consists of “emergency funds” made in 2012 and 2103. According to Nadim Shehadah, professor at the Tufts University in the US, cited by BBC researcher Ali Qadimi, that amounted to $14-15 billion.

Tehran sources say the “emergency funds” were disbursed with the help of Austrian and Italian private banks over 30 months in tranches of $300 to $1.2 billion.

The fifth item of Iranian expense consist of funds needed to maintain several paramilitary forces made up of “volunteers for martyrdom” from Afghanistan, Pakistan and, in much smaller numbers, Iraq. The umbrella organ for these forces is the so-called Fatemiyoun Division, formerly a brigade, which was built up to 12,000 men in 2016.

At the time, General Qasem Soleimani, Commander of the Quds Corps, the organ that is supposed to coordinate Iranian operations in Syria, claimed that “volunteers for martyrdom” received no more than $100 a month in cash.

However, several Majlis members, speaking on condition of anonymity, claim that the payment is closer to $1,000 a month as Quds Corps also pays “subsistence pay” to families of the “volunteers for martyrdom.” All in all, the Fatemiyoun Division and ancillaries cost Iran around $1 billion a year. That does not include the $800 million paid annually to the Lebanese branch of “Hezbollah” led by Hassan Nasrallah.

A sixth source of income to finance the war on Assad’s side is provided by what Tehran terms bilateral trade. Much of this, of course, is more in the nature of transit trade with Iranian companies selling Syria’s oil and gas and phosphate to third countries. According to General Yahya Rahim Safavi, a military adviser to “Supreme Guide” Ali Khamenei, in addition to that trade Iran has won a major mobile phone contract in Syria with the prospect of creating a major new source of income to finance the war.

A major source of income for Assad consisted of money spent by over 1.2 million Iranian pilgrims, who visited Syria each year prior to 2011. However, the flow of pilgrims has almost completely dried up with Iranians preferring to visit “holy shrines” in Iraq. Meanwhile, some of the infrastructure, including over 100 hotels, built with Iranian money have either been badly damaged or left abandoned in previously peaceful areas turned into battlefields.

According to some studies, Iran’s losses on that score could be put at over $2 billion as much of the infrastructure may no longer be recoverable.

A seventh source item of cost for the Syrian war is represented by what Iran spends on keeping around 13,000 of its own troops, often presented as advisers or technicians, in Syria. No official figures are available. But if Iranian troops in Syria receive the same treatment as comparable military ranks inside Iran itself the annual cost could be around $3 billion in salaries and upkeep, not taking into account the cost of weapons and materiel used. The most conservative estimate would see Iran spending an average of $12.7 billion a year in Syria of which less than $2 billion may be recovered in trade deals using Syrian energy and raw material.

According to Tehran sources, part of the funds needed is raised through a special one per cent tariff imposed on all car imports in Iran with the proceeds credited to a special “Resistance Account” controlled by the office of the “Supreme Guide”.

Another source of funds is provided by “voluntary donations” supposedly for the defense or rebuilding of “shrines ”. Under that scheme 26 of Iran’s 31 provinces are assigned quotas to fulfill by raising funds from local businesses and through donations collected at mosques and bazaars. Provinces with a Sunnis majority are excluded from the scheme. As these “donations” are collected by local Friday prayer leaders, it is hard to know what percentage is actually transferred to the central fund and how much is kept by the involved clerics themselves.

Tehran University Professor Sadeq Ziba-Kalam recently invited the leadership in Tehran to review involvement in Syria. He was rewarded with a prison sentence of 18 months.

Nevertheless, many Iranians are beginning to realize that Syria is a costly war, both in terms of human losses and financial burden. And that, some analysts, believe is already encouraging a re-think of what some Iranians regard as a losing strategy.



Gaza’s Bakeries Could Shut Down within a Week under Israel’s Blockade of All Food and Supplies

 Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)
Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)
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Gaza’s Bakeries Could Shut Down within a Week under Israel’s Blockade of All Food and Supplies

 Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)
Palestinians queue outside a bakery during Eid al-Fitr, which marks the end of the holy fasting month of Ramadan, in Gaza City on March 30, 2025. (AFP)

Gaza’s bakeries will run out of flour for bread within a week, the UN says. Agencies have cut food distributions to families in half. Markets are empty of most vegetables. Many aid workers cannot move around because of Israeli bombardment.

For four weeks, Israel has shut off all sources of food, fuel, medicine and other supplies for the Gaza Strip’s population of more than 2 million Palestinians. It’s the longest blockade yet of Israel’s 17-month-old campaign against Hamas, with no sign of it ending. Many are going hungry during the normally festive Eid al-Fitr, a major Muslim holiday.

Aid workers are stretching out the supplies they have but warn of a catastrophic surge in severe hunger and malnutrition. Eventually, food will run out completely if the flow of aid is not restored, because the war has destroyed almost all local food production in Gaza.

"We depend entirely on this aid box," said Shorouq Shamlakh, a mother of three collecting her family’s monthly box of food from a UN distribution center in Jabaliya in northern Gaza. She and her children reduce their meals to make it last a month, she said. "If this closes, who else will provide us with food?"

The World Food Program said Thursday that its flour for bakeries is only enough to keep producing bread for 800,000 people a day until Tuesday and that its overall food supplies will last a maximum of two weeks. As a "last resort" once all other food is exhausted, it has emergency stocks of fortified nutritional biscuits for 415,000 people.

Fuel and medicine will last weeks longer before hitting zero. Hospitals are rationing antibiotics and painkillers. Aid groups are shifting limited fuel supplies between multiple needs, all indispensable — trucks to move aid, bakeries to make bread, wells and desalination plants to produce water, hospitals to keep machines running.

"We have to make impossible choices. Everything is needed," said Clémence Lagouardat, the Gaza response leader for Oxfam International, speaking from Deir al-Balah in central Gaza at a briefing Wednesday. "It’s extremely hard to prioritize."

Compounding the problems, Israel resumed its military campaign on March 18 with bombardment that has killed hundreds of Palestinians, mostly women and children, according to health officials. It has hit humanitarian facilities, the UN says. New evacuation orders have forced more than 140,000 Palestinians to move yet again.

But Israel has not resumed the system for aid groups to notify the military of their movements to ensure they were not hit by bombardment, multiple aid workers said. As a result, various groups have stopped water deliveries, nutrition for malnourished children and other programs because it's not safe for teams to move.

COGAT, the Israeli military body in charge of coordinating aid, said the system was halted during the ceasefire. Now it is implemented in some areas "in accordance with policy and operational assessments ... based on the situation on the ground," COGAT said, without elaborating.

Rising prices leave food unaffordable

During the 42 days of ceasefire that began in mid-January, aid groups rushed in significant amounts of aid. Food also streamed into commercial markets.

But nothing has entered Gaza since Israel cut off that flow on March 2. Israel says the siege and renewed military campaign aim to force Hamas to accept changes in their agreed-on ceasefire deal and release more hostages.

Fresh produce is now rare in Gaza’s markets. Meat, chicken, potatoes, yogurt, eggs and fruits are completely gone, Palestinians say.

Prices for everything else have skyrocketed out of reach for many Palestinians. A kilo (2 pounds) of onions can cost the equivalent of $14, a kilo of tomatoes goes for $6, if they can be found. Cooking gas prices have spiraled as much as 30-fold, so families are back to scrounging for wood to make fires.

"It’s totally insane," said Abeer al-Aker, a teacher and mother of three in Gaza City. "No food, no services. ... I believe that the famine has started again. "

Families depend even more on aid

At the distribution center in Jabaliya, Rema Megat sorted through the food ration box for her family of 10: rice, lentils, a few cans of sardines, a half kilo of sugar, two packets of powdered milk.

"It’s not enough to last a month," she said. "This kilo of rice will be used up in one go."

The UN has cut its distribution of food rations in half to redirect more supplies to bakeries and free kitchens producing prepared meals, said Olga Cherevko, spokesperson for the UN humanitarian agency, known as OCHA.

The number of prepared meals has grown 25% to 940,000 meals a day, she said, and bakeries are churning out more bread. But that burns through supplies faster.

Once flour runs out soon, "there will be no bread production happening in a large part of Gaza," said Gavin Kelleher, with the Norwegian Refugee Council.

UNRWA, the main UN agency for Palestinians, only has a few thousand food parcels left and enough flour for a few days, said Sam Rose, the agency's acting director in Gaza.

Gaza Soup Kitchen, one of the main public kitchens, can’t get any meat or much produce, so they serve rice with canned vegetables, co-founder Hani Almadhoun said.

"There are a lot more people showing up, and they’re more desperate. So people are fighting for food," he said.

Israel shows no sign of lifting the siege

The United States pressured Israel to let aid into Gaza at the beginning of the war in October 2023, after Israel imposed a blockade of about two weeks. This time, it has supported Israel’s policy.

Rights groups have called it a "starvation policy" that could be a war crime.

Israeli Foreign Minister Gideon Saar told a news conference Monday that "Israel is acting in accordance with international law."

He accused Hamas of stealing aid and said Israel is not required to let in supplies if it will be diverted to combatants.

He gave no indication of whether the siege could be lifted but said Gaza had enough supplies, pointing to the aid that flowed in during the ceasefire.

Hunger and hopelessness are growing

Because its teams can’t coordinate movements with the military, Save the Children suspended programs providing nutrition to malnourished children, said Rachael Cummings, the group’s humanitarian response leader in Gaza.

"We are expecting an increase in the rate of malnutrition," she said. "Not only children — adolescent girls, pregnant women."

During the ceasefire, Save the Children was able to bring some 4,000 malnourished infants and children back to normal weight, said Alexandra Saif, the group’s head of humanitarian policy.

About 300 malnourished patients a day were coming into its clinic in Deir al-Balah, she said. The numbers have plunged — to zero on some days — because patients are too afraid of bombardment, she said.

The multiple crises are intertwined. Malnutrition leaves kids vulnerable to pneumonia, diarrhea and other diseases. Lack of clean water and crowded conditions only spread more illnesses. Hospitals overwhelmed with the wounded can’t use their limited supplies on other patients.

Aid workers say not only Palestinians, but their own staff have begun to fall into despair.

"The world has lost its compass," UNRWA’s Rose said. "There’s just a feeling here that anything could happen, and it still wouldn’t be enough for the world to say, this is enough."