When Hafez al-Assad Opened Lebanon’s Gate to Tehran

Hafez al-Assad made it easier for Khamenei to consolidate control over Lebanon through Hezbollah. (AFP)
Hafez al-Assad made it easier for Khamenei to consolidate control over Lebanon through Hezbollah. (AFP)
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When Hafez al-Assad Opened Lebanon’s Gate to Tehran

Hafez al-Assad made it easier for Khamenei to consolidate control over Lebanon through Hezbollah. (AFP)
Hafez al-Assad made it easier for Khamenei to consolidate control over Lebanon through Hezbollah. (AFP)

One week after the Iranian Revolution declared victory on February 11, 1979, two photographs emerged from Tehran that, in retrospect, help explain many of the storms that would later sweep the Middle East, from Iran’s expanding regional influence to what the author calls “Sinwar’s Flood."

In the first image, two men sit side by side on a carpet. It is impossible to tell the story of the modern Middle East without dwelling on both of them. One is Ayatollah Khomeini, the architect of the Iranian Revolution. The other is Yasser Arafat, the founder of the modern Palestinian national movement.

Standing near Arafat are the Lebanese cleric Hani Fahs, the Iranian cleric Sadegh Khalkhali, and Ahmad Khomeini, the revolutionary leader’s son. Near Khomeini stand Mahmoud Abbas — today president of the Palestinian Authority — and Hani al-Hassan, a senior Fatah leader who would become the first Palestinian ambassador to revolutionary Iran.

In the second photograph, Arafat is shown addressing a crowd after the Palestinian flag was raised over the building that had housed the Israeli embassy in Tehran.

Arafat and Khomeini, with Mahmoud Abbas standing next to his right.

The symbolism of those scenes was profound. During his long years in exile in Najaf, Khomeini had understood that Palestine was the magic word that opened Arab and Muslim hearts. He may have believed that embracing the Palestinian cause would provide a passport for a Shiite revolution seeking entry into the vast Sunni world. It was natural that Tehran would celebrate Arafat, whose legitimacy was unrivaled after he had become the global symbol of the Palestinian struggle. It was equally natural that Arafat would welcome Iran’s dramatic shift from a state aligned with Israel to one proclaiming full support for the Palestinian revolution.

As always, Arafat lavished praise on his hosts. Yet experience had taught him not to surrender his cards to anyone. He had spent years dealing with powerful leaders who sought to use the Palestinian cause either to legitimize their own regimes or to project influence far beyond their borders.

Palestine was not Arafat’s only asset. He operated on Israel’s border through southern Lebanon, a frontier that had effectively become a Palestinian-Israeli border before eventually evolving into an Iranian-Israeli one. Although Lebanon at the time lay under the domination of Hafez al-Assad and the Syrian army — and despite Assad’s deep hostility toward Arafat — the Palestinian leader still controlled the decision of war and peace in southern Lebanon. That authority would later pass to Hassan Nasrallah, the late secretary-general of Hezbollah.

Arafat quickly grasped the sensitivities surrounding relations with Iran. Here was a Shiite revolution emerging in a predominantly Sunni world. The new regime’s commitment to “exporting the revolution” alarmed governments near and far. When the Iran-Iraq War erupted, Arafat attempted to play the role of mediator. He recalibrated his calculations, preserving room for strong relations with the Gulf Arab states, whose financial support remained indispensable to the Palestinian movement.

Any reading of 1979 must also account for another major development. That year Egypt completed its departure from the military front of the Arab-Israeli conflict. The process culminated in the signing of the Camp David Accords by Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin under the sponsorship of US President Jimmy Carter. The agreement completed the geopolitical earthquake Sadat had triggered in 1977 when he traveled to Jerusalem and offered peace to Israel.

Egypt’s departure left a vacuum in the Arab world. That vacuum made it easier for Khomeini’s revolution to advance across the region.

Beginning in 1990, Iran would receive three major unintended gifts. The first came from Saddam Hussein when he invaded Kuwait and redirected global attention toward the “Iraqi threat.” The second came from Osama bin Laden, whose attacks of September 11, 2001, focused the world on al-Qaeda terrorism. The third arrived when the United States toppled Iraq’s Baathist regime in 2003, allowing Iranian influence to flow into Iraq’s institutions and political structure.

What many overlooked was that Iran had already received two crucial gifts during the 1980s from Syrian President Hafez al-Assad.

The first came after Israel’s 1982 invasion of Lebanon. Assad agreed to allow hundreds of members of Iran’s Revolutionary Guard Corps to enter Lebanon’s Beqaa Valley and train Lebanese Shiite Islamist groups seeking to organize resistance against Israeli occupation. From those groups, Hezbollah would eventually emerge.

The second gift arrived in the mid-1980s, when Assad decided to subordinate the Lebanese National Resistance Front — known by its Arabic acronym, Jammoul — to the Islamic resistance led by Hezbollah.

Elias Atallah, one of Jammoul’s coordinators, later recounted to Asharq Al-Awsat a dramatic meeting that preceded a series of assassinations targeting Communist Party leaders.

According to Atallah, Syrian intelligence chief in Lebanon Major General Ghazi Kanaan summoned him and Lebanese Communist Party Secretary-General George Hawi to an urgent meeting at a hotel in the Beqaa Valley.

Speaking on behalf of “Mr. President,” Kanaan bluntly informed them that Jammoul must coordinate its operations in advance with Syrian intelligence. He demanded more than that. Jammoul, he said, should coordinate with Hezbollah, or even merge with it.

The two men refused. Relations between the Communist Party and Hezbollah were already extremely tense. Kanaan abruptly ended the meeting with a warning: “You will pay a heavy price.”

A campaign of assassinations followed, targeting prominent communist figures. Kanaan scarcely concealed his satisfaction. At one funeral, he reportedly approached party members and remarked: “Is this better?”

An undated photo of Nasrallah during his youth. (Iran supreme leader’s office)

The Syrian intervention dealt a devastating blow to the leftist resistance. Islamic resistance became the sole banner of armed struggle against Israel. Hezbollah reaped the benefits. In 2000, Israeli forces withdrew from southern Lebanon under fire and without extracting political concessions from Beirut. Iran now stood on Israel’s northern frontier through Hezbollah.

After the fall of Saddam Hussein, the road linking Tehran to Beirut through Baghdad and Damascus opened fully. What some called the “Axis of Resistance” and others the “Shiite Crescent” had taken shape.

At the beginning of the 1980s, many believed Saddam Hussein’s war had trapped the embers of Khomeini’s revolution within Iran’s borders. Then, in June 1982, an unexpected window opened.

Israel invaded Lebanon, besieged Beirut, and forced the Palestine Liberation Organization to leave the country. The image of Beirut bidding farewell to Yasser Arafat as he departed into another exile marked the end of an era.

Amid the invasion, George Hawi, Elias Atallah, Mohsen Ibrahim — the secretary-general of the Organization of Communist Action in Lebanon — and several comrades launched the Lebanese National Resistance Front against Israeli occupation. Their operations forced Israeli troops to withdraw quickly from Beirut.

At the same time, three Shiite Islamist groups inspired by Iran’s revolution entered discussions aimed at creating a unified resistance movement. The talks produced what became known as the “Document of the Nine,” which was taken to Tehran and received Khomeini’s blessing. He instructed the Revolutionary Guards to support the unity of these groups, which would eventually dissolve into Hezbollah.

Hezbollah’s current secretary-general, Naim Qassem, later recounted the organization’s founding in his book Hezbollah: The Method, the Experience, the Future. He identified the movement’s three pillars as Islam as a way of life, resistance to Israel as the highest priority, and allegiance to Wilayat al-Faqih as the ultimate reference point.

Hafez al-Assad often told visitors that the Iranian Revolution compensated for the strategic loss of Egypt. Those familiar with his thinking, however, suggest additional motives.

He was deeply hostile to Saddam Hussein. He also believed that Gulf Arab concerns about revolutionary Iran would make Syria indispensable to the Gulf states, bringing political and financial advantages. Allowing Hezbollah to grow in Lebanon fit neatly into that calculation.

Hezbollah was born under the mantle of the Wilayat al-Faqih and on the front line with Israel. It soon found itself on a front line with the United States as well.

In October 1983, a suicide bomber drove a truck packed with explosives into the US Marine barracks in Beirut, sending a convoy of coffins back to Ronald Reagan’s America.

Syria later played a crucial role in exempting Hezbollah from the disarmament provisions imposed on Lebanese militias after the Taif Agreement. Iran spared no effort in supporting the movement, enabling it to build a steadily expanding military and political force. Together, Tehran and Damascus also helped consolidate the Lebanese Shiite political order, bringing Hezbollah into partnership with the Amal Movement, led by Nabih Berri, who has served as speaker of parliament since 1992.

Old conflicts between Amal and Hezbollah gradually faded. Berri became a nearly permanent necessity for Hezbollah, helping shield it from political isolation, though never fundamentally altering its deeper ideological program.

The first decade of the twenty-first century produced scenes whose consequences extended far beyond their immediate settings. On April 9, 2003, an American armored vehicle pulled down Saddam Hussein’s statue in Baghdad’s Firdos Square. The man whose statues inspired fear simply by their presence was denied the final showdown he had imagined. The army that had fought Iran for eight years evaporated before the American military machine.

From left to right: Qasem Soleimani, Hassan Nasrallah and Ali Khamenei. (Iran supreme leader’s office)

Saddam was not far from Firdos Square when his statue fell. He chose resistance, badly misjudging both American power and the depth of Iraqi opposition to his rule.

Another defining image followed.

On December 13, 2003, Saddam was captured by US forces near Tikrit. Soldiers pulled him from a small underground hideout on a farm in al-Dawr. Television screens around the world carried the image of an American soldier inspecting the former Iraqi president’s mouth. He offered no resistance. Stories that he always carried a final bullet to avoid the humiliation of capture proved false.

Yet Saddam, obsessed with his place in history, succeeded in shaping part of his legacy. He denied the legitimacy of the court trying him and repeatedly insisted that he remained Iraq’s lawful president. Judge Raouf Rashid Abdel Rahman, who presided over the tribunal that sentenced Saddam to death, later told the author that “he was a difficult man, but he never asked for anything for himself.”

Saddam remained composed when the noose was placed around his neck.

The new Iraqi authorities made a grave mistake by scheduling the execution for December 30, 2006, the first day of Eid al-Adha. Another error followed. According to former Prime Minister Nouri al-Maliki, Saddam’s body was brought to his residence in Baghdad’s Green Zone after the execution, where Maliki briefly viewed it and reproached the dead man.

The images of Saddam’s capture, trial, and execution — combined with other factors — helped inflame Sunni-Shiite tensions inside Iraq and beyond. For many Iraqis, regardless of Saddam’s crimes, the execution appeared less like justice than revenge carried out on behalf of the United States, Iran, and Iraq’s pro-Iranian opposition.

Qassem Soleimani would soon devote himself to destabilizing the American military presence in Iraq, aided by Bashar al-Assad and Hassan Nasrallah.

Then another dramatic event emerged from Beirut.

On February 14, 2005, former Lebanese Prime Minister Rafik Hariri was assassinated in a massive explosion that tore through Beirut and scattered his body across the scene. The murder shook Lebanon like an earthquake. Huge crowds poured into the streets demanding the withdrawal of Syrian troops, which had been stationed in Lebanon since 1976.

Later that month, the author met Bashar al-Assad in Damascus and repeatedly asked whether Syrian security services had been involved.

Assad categorically denied any connection.

“Not from near or far,” he insisted.

Yet questions multiplied. Had he spoken with such certainty because he knew who was responsible?

The international investigation wandered through years of political interference, misinformation, and false witnesses. Eventually, the Special Tribunal for Lebanon indicted members of Hezbollah.

British soldiers are seen in Iraq’s Basra on April 7, 2003. (AFP)

The case generated enduring questions. Was Hariri killed on the fault line between Sunnis and Shiites? Was he eliminated because of regional rivalries? Was he seen as an obstacle to a broader strategic project? Was he punished for trying to restore Lebanon as a normal state rather than leave it a missile platform in the conflict with Israel?

Hariri’s assassination transformed both Lebanon and Syria.

Bashar al-Assad was forced to swallow the bitter pill of withdrawing Syrian troops from Lebanon, a country his father had dominated for decades. Hafez al-Assad had bent much of Lebanon’s political class to his will and established the rules of the Syrian era. Governments bore the fingerprints of Syrian intelligence officers. Parliament was summoned and complied.

That era exiled General Michel Aoun and imprisoned Samir Geagea.

One major figure remained: Rafik Hariri. He had accepted operating under the Syrian umbrella but never abandoned his dream of rebuilding a functioning Lebanese state. His growing domestic, Arab, and international stature worried the narrow circle around Assad, and later worried Hezbollah as well.

Syria lost its Lebanese foothold, a platform that had amplified its influence and enriched many of its officers.

What followed was a Syria trapped within its own borders, relying on coercion and burdened by economic failure, while Lebanon became polarized between the March 14 movement and the March 8 alliance led by Hezbollah.

Many believe these developments helped set the stage for the July 2006 war between Hezbollah and Israel, a conflict in which Qasem Soleimani played an active role behind the scenes.

After the war, Bashar al-Assad openly emphasized the importance of Syria’s strategic depth for Hezbollah. He even acknowledged that Syrian soldiers in civilian clothing had transported missiles to the movement and sometimes all the way to southern Lebanon.

United Nations Security Council Resolution 1701 ended the war, deploying the Lebanese Army alongside UNIFIL forces in southern Lebanon. The conflict partially altered the political landscape created after Hariri’s assassination and gave Hezbollah another justification for retaining its arsenal.

Many Lebanese politicians fundamentally misunderstood Hezbollah and its weapons. They assumed that Israel’s withdrawal from Lebanon should have been enough for the movement to disarm, just as other militias had done after Taif. They overlooked the regional dimension of Hezbollah’s arsenal and its connection to Iran’s broader project.

In May 2008, Prime Minister Fouad Siniora’s government challenged Hezbollah’s private telecommunications network, declaring it illegal. The response was swift. Hezbollah turned its weapons inward and effectively seized control of Beirut, sending a clear message: the arsenal was here to stay.

The episode inflicted a deep wound on relations between Hezbollah’s community and many other Lebanese groups.

When the first spark of the Arab Spring erupted in Tunisia on December 17, 2010, Bashar al-Assad felt little concern. He believed Syria was different. More likely, his confidence reflected faith in a vast security apparatus whose brutality would deter dissent.

On March 15, 2011, Assad’s security services dealt with the children of Daraa according to that same doctrine of repression. Protests spread and became a nationwide uprising.

Assad showed little genuine interest in compromise. His generals viewed the revolt through the lens of minority insecurity and foreign conspiracy. The regime escalated from repression to barrel bombs and chemical weapons.

As opposition forces approached Assad’s presidential palace, two men rushed to his rescue: Qassem Soleimani and Hassan Nasrallah.

Iran had no intention of allowing Syria — the central link in its regional axis — to be torn away.

Rafik al-Hariri’s assassination was a turning point that allowed Iran to impose control over Lebanon. (AFP)

Soleimani persuaded Russian President Vladimir Putin to commit Russian air power to Assad’s defense. Hezbollah deployed fighters into Syria in 2013, while militias organized by Soleimani poured into the battlefield.

The regime survived. The cost was enormous.

The intervention deepened Sunni-Shiite wounds that remain visible today, not least in the rhetoric that dominates Syrian social media.

Years later in Paris, after defecting from Bashar al-Assad’s regime, former Syrian Vice President Abdul Halim Khaddam remarked that Hafez al-Assad could never have imagined Iranian influence in Lebanon growing to such an extent, or that his son would one day depend on pro-Iranian militias, including Hezbollah, to save his rule.

By then, Hezbollah was widely described as a regional force too large to fit within Lebanon’s political equation.

The author recalls a conversation with former Yemeni President Ali Abdullah Saleh before the end of the decade. In his characteristic style, Saleh asked: “Why is Hezbollah taking young Houthis to Damascus, sending them on to Lebanon without passport stamps, and training them in camps in the Bekaa Valley?”

The question hinted at a wider regional project already taking shape.

When Hezbollah launched its support front for “Sinwar’s Flood,” and later its support front for Iran itself, many Lebanese were reminded that their country had been living under the echo of Iranian power since the 1980s.

By the second decade of the twenty-first century, talk circulated within the so-called Resistance Axis of a coming “major blow” - a strike that many believed Yahya Sinwar dreamt of delivering through a rain of rockets and drones launched from multiple fronts across the region.



Sudan’s Muslim Brotherhood at a Crossroads

Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)
Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)
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Sudan’s Muslim Brotherhood at a Crossroads

Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)
Ali Ahmed Karti, Secretary General of the Sudanese Islamic Movement. (Facebook)

Sudan is passing through an exceptionally complex phase as the war enters its fourth year and military and political alliances continue to shift at a rapid pace. With factions that have defected from the Rapid Support Forces (RSF) joining the Sudanese Armed Forces, alongside the Joint Forces of Darfur’s armed movements, the Sudan Shield Forces, and formations linked to the Islamist movement, a new balance of power is gradually emerging within the anti-RSF camp.

This evolving landscape reflects a temporary convergence of interests among actors that differ sharply in their backgrounds, objectives, and visions for Sudan’s future. While confronting the RSF remains the primary factor uniting these forces, underlying political and military differences raise serious questions about the durability of their alliance.

Sudan’s history suggests that wartime coalitions do not necessarily evolve into stable partnerships in peacetime. Instead, they often become arenas for new struggles over influence, power, and postwar arrangements. Understanding the emerging balance of forces is therefore crucial to assessing whether cooperation or confrontation will define the next phase.

In recent months, the Sudanese army has become the principal military umbrella under which a range of disparate groups operate.

The Joint Forces drawn from Darfur’s armed movements bring battlefield experience and significant combat capability. The Sudan Shield Forces have emerged as a growing tribal and military force, while former RSF members are seeking to secure a place within the new order.

Necessary alliance

This configuration has created what amounts to an “alliance of necessity.” Its members are united by a common objective — defeating the RSF — but not by a shared political project. Each faction has its own calculations regarding future power-sharing arrangements and influence.

Within this context, a central question concerns the place of Sudan’s Islamist movement in the postwar landscape.

For decades, Islamists constituted one of the most influential forces within the Sudanese state through their political, organizational, and security networks. Today, however, they no longer monopolize the instruments of power.

Many of the groups that have risen during the conflict do not subscribe to the Islamist project. Some also carry a long history of political rivalry with Islamists dating back to the era of the National Salvation regime led by ousted former President Omar al-Bashir.

This has produced a striking paradox: the broader the coalition supporting the army becomes, the smaller the Islamists’ relative weight within it. They are no longer the sole source of political backing, military support, or social mobilization. Instead, they have become one actor among several competing centers of influence, each pursuing its own interests.

Sudanese army soldiers parade in the streets of eastern Sudan's city of Gedaref on August 14, 2025 to mark the 71st anniversary of the formation of the Sudanese army. (AFP)

Mounting pressure

Signs are growing that the Islamist movement is facing increasing political pressure, both domestically and internationally.

Retired Maj. Gen. Abdel-Hadi Abdel-Basit, a strategic analyst close to Islamist circles, said the movement is confronting unprecedented challenges.

Calls have intensified for Islamists to be excluded from post-war arrangements and even held accountable for their role during decades of rule and the allegations associated with that period.

In recent months, several prominent Islamist figures were detained and later released, while National Congress Party leader Al-Numan Abdel Halim remains in custody.

These developments coincided with what many Islamists believe were externally driven pressures, including the US State Department’s designation of Sudan’s Islamist movement, the National Congress Party, and the Al-Baraa ibn Malik Battalion as terrorist organizations.

Regional and international actors have likewise called for Islamists to be excluded from any future political process.

Such positions have surfaced in consultations involving both the Quad mechanism — comprising Saudi Arabia, Egypt, the United Arab Emirates, and United States — and the Quintet mechanism, which includes the United Nations, the European Union, the African Union, the Arab League, and Intergovernmental Authority on Development (IGAD).

Civilian political forces, however, view the decline of Islamist influence primarily as a consequence of Sudan’s democratic transition rather than the war itself.

Bakri Eljack, spokesman for the democratic civilian coalition Somoud (Resilience), argued that army commander Abdel Fattah al-Burhan may be able to distance himself from the Islamists, but their influence within state institutions remains significant.

Any effort to remove them would require a broad political alliance capable of managing the next phase, he explained.

Sharif Mohamed Osman, of the Sudanese Congress Party, said the Islamist project and National Congress Party rule were rejected by the people will during the December 2018 revolution.

He noted that efforts associated with prolonging the conflict have further weakened the movement, while international pressure and sanctions have deepened its political isolation.

Yet, predictions of the Islamists’ complete demise may be premature. The movement still possesses extensive organizational networks, decades of political experience, and influence within parts of the state and society.

Even so, current trends suggest that regaining the dominant position it enjoyed during the Bashir era may be more difficult than ever before.


Can Iran Maintain its Influence in Iraq?

Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)
Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)
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Can Iran Maintain its Influence in Iraq?

Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)
Iraqi Prime Minister Ali al-Zaidi meets Iranian Ambassador Mohammad Kazem Al Sadeq in Baghdad. (Government media)

Iraqi politicians are closely watching what they describe as the potential “side effects” of any future US-Iran agreement and how it could reshape the balance of power inside Iraq.

Some observers argue that a deal would likely strengthen Washington’s influence while diminishing Tehran’s leverage. Others contend that Iran could emerge from the process with a renewed and possibly more durable form of dominance in Iraq over the coming months and years.

With significant ambiguity still surrounding the US-Iran memorandum of understanding - particularly regarding Tehran’s regional proxies and allied armed groups - signals from both capitals have done little to clarify Iraq’s future position within the competing spheres of influence of the two longtime adversaries.

The US Position

Despite repeated American warnings to Baghdad against bringing factions designated on the US terrorism list into government, Washington’s broader position remains unclear.

Asked by Alhurra, the US-funded Arabic-language broadcaster, whether a US-Iran agreement would affect Iraq and whether it might weaken or strengthen armed factions, Joshua Harris, the chargé d’affaires at the US Embassy in Baghdad, declined to speculate on the outcome.
Instead, he said the priority should be an Iraqi government that places the interests of its citizens first, noting that the United States approaches foreign policy by prioritizing its own national interests.

Harris added that the foundation of a mutually beneficial partnership between Washington and Baghdad depends on the Iraqi state confronting the challenge posed by militias and ensuring that weapons remain exclusively under state control. He described this as the essential benchmark that Iraq must meet in order to deepen its partnership with the United States.

A handout photo made available by the Iraqi Prime Minister's Media Office on 17 June 2026 shows Iraqi Prime Minister Ali al-Zaidi (L) meeting with US Special Presidential Envoy for Syria and Iraq Tom Barrack (R) in Baghdad, Iraq, 15 June 2026. EPA/IRAQI PRIME MINISTER'S MEDIA OFFICE

Iran Regains Momentum

At the same time, the Iranian role appears to be returning to the level seen before the war that erupted at the end of February.

Media outlets close to Tehran report that Iranian Foreign Minister Abbas Araghchi plans to visit Baghdad soon to discuss the talks held in Switzerland and preparations for the funeral procession of Iran’s former Supreme Leader Ali Khamenei.

Earlier, Tehran Mayor Alireza Zakani announced that Khamenei’s body would be transferred in early July as part of the funeral arrangements preceding burial ceremonies.

Even amid uncertainty surrounding those plans, some observers argue that the announcement itself underscores the extent of Iran’s influence in Iraq.

The Militias Question

Although Iran-aligned factions created security challenges through their involvement in the war on Tehran’s side, Iran’s ambassador to Iraq, Mohammad Kazem Al Sadeq, recently insisted that Iran “has not asked any party to intervene because it did not need such intervention.”

The remark suggested that Iraqi armed factions volunteered to support Iran rather than acting at Tehran’s request.

On the issue of restricting weapons to state control - a matter on which Washington has adopted a notably firm position - the Iranian ambassador said it was an internal Iraqi matter and that Tehran would respect any decision taken by the Iraqi government.

At the same time, he stressed the need to understand why armed factions wish to retain their weapons and to address what he described as their concerns and fears.

The source argued that Iran has demonstrated over the past two decades that it knows precisely what it wants from Iraq, unlike what he characterized as inconsistent American policy. He predicted that this situation would continue even after any US-Iran agreement is signed.

According to the source, who requested anonymity, Iran is likely to adopt a less visible approach after an agreement, one that avoids provoking Washington while preserving its traditional influence through allied political parties and figures.

Mourners attend the funeral of members of the Iraqi armed group Kataib Hezbollah who were killed in an airstrike that targeted a PMF headquarters near the western al‑Qaim district on the Syrian border, amid the US-Israel conflict with Iran, in Baghdad, Iraq, March 2, 2026. REUTERS/Thaier Al-Suda

The Oil Card

Opponents of Iranian influence take a different view. They believe the administration of President Donald Trump is both willing and able to curb Tehran’s reach through mounting pressure on Iran and sustained influence over decision-making in Baghdad.

These groups argue that the threat of economic sanctions alone could prompt Iraqi leaders - particularly Shiite political parties - to reconsider the risks associated with continued Iranian influence.

A key factor is Iraq’s dependence on the US-controlled financial system. Revenues from Iraqi oil sales are deposited with the US Federal Reserve before being transferred back to Iraqi banks, giving Washington a powerful source of leverage over Baghdad.


Undoing the ‘Tangled Nest’ of Iran Sanctions Won’t Be Easy or Quick

A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)
A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)
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Undoing the ‘Tangled Nest’ of Iran Sanctions Won’t Be Easy or Quick

A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)
A veiled Iranian woman walks past an anti-US mural, depicting an Iranian and US negotiation table, next to the former US embassy in Tehran, Iran, 22 June 2026. (EPA)

Tehran stands to gain billions of dollars from a 60-day reprieve from US sanctions announced on Monday, but unwinding more than four decades of restrictions poses legal, political and commercial challenges that could take years.

At issue is whether an interim US deal with Iran can translate into lasting economic relief, given the complexity of dismantling a sanctions regime that spans US law, international measures and private-sector risk concerns.

The United Nations, the US and the European Union have imposed sanctions and trade embargoes and have frozen assets since the late 1970s over Iran's nuclear program, human rights violations and support for armed groups around the region.

Under a 14-point memorandum of understanding signed by the US and Iran last week, Washington is to start abolishing all types of sanctions using a schedule to be forged in a final deal within 60 days, a period that can be extended.

On Monday, the US Treasury issued a temporary general license allowing the production, delivery and sale of crude oil and petrochemical and petroleum products of Iranian origin through August 21.

Removing the remaining sanctions - if it happens - would represent a stark change in US policy toward the Middle East, which has long focused on curbing ‌Iran's influence and ‌using financial pressure to weaken its theocratic government.

It would also be difficult, requiring executive action for some measures, approval ‌by ⁠Congress for others ⁠and close coordination with the UN and other countries that have imposed their own sanctions. Companies, wary after decades of restrictions, could also blunt the impact.

"You have this tangled nest of sanctions, and it's not just executive orders, it's congressional sanctions," said Juan Zarate, deputy national security adviser for combating terrorism under former President George W. Bush.

CONGRESS IS SKEPTICAL

Washington first sanctioned Iran in 1979, after revolutionary students seized the US embassy in Tehran, holding diplomats hostage.

Since then, Congress has passed half a dozen sanctions laws and presidents have issued executive orders over Iran's nuclear program and its support for groups the US deems terrorist organizations including Hamas, Hezbollah and Yemen's Houthis.

Since early 2025, the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on more than 1,000 people, vessels and aircraft, according to Treasury data.

Delisting thousands of entities designated for ⁠sanctions would take OFAC at least a year, said Jeremy Paner, a partner at law firm Hughes Hubbard & Reed ‌and a former US sanctions official.

President Donald Trump can rescind executive orders issued on Iran, but some ‌measures - including sanctions on Hamas and Hezbollah - are mandated by law and will have to be removed or amended by Congress, where the interim deal has already sparked sharp ‌public criticism from his fellow Republican lawmakers.

Undoing 40 years of sanctions would be difficult, added Matt Zweig, managing director of policy at FDD ‌Action, the lobbying arm of the Foundation for Defense of Democracies.

"Any attempt to comprehensively remove layer upon layer of sanctions will be like peeling back an onion - exposing the administration - not just to legal complexities but political risks," said Zweig, a former aide on the House Foreign Affairs Committee.

The license issued on Monday could be worth up to $3 billion for Iran over two months, by some estimates.

That could swell to "at least tens of billions of dollars" if made permanent, erasing a discount on Iranian oil, allowing Tehran to ‌sell to additional buyers beyond China, and increasing exports, said Edward Fishman, senior fellow at the Council on Foreign Relations. China now buys about 90% of Iranian oil, despite the sanctions.

The new license is broader than ⁠the one issued in March, calling for ⁠inclusion of not just oil and petroleum products, but also banking, insurance and transportation related to the oil trade, giving Tehran quicker access to its revenues.

"There are a number of thorny issues involved," said Stephanie Connor, a former OFAC official now a partner with law firm Holland & Knight, adding that lifting sanctions could mean funds flowing to groups the US considers a threat.

"Are we really going to let money start flowing to Iran's Revolutionary Guard Corps?" she asked, referring to the powerful paramilitary force that the US has designated a foreign terrorist organization.

WARY COMPANIES

Banks, oil firms and insurers will face evolving regulations, tougher due diligence and exposure to sanctions-evasion risks tied to Iran links with countries such as China, North Korea and Russia. They also remain subject to separate sanctions from Britain, the UN, the EU and others.

"We've kind of beaten the markets up with the risk of doing business with or through Iran, so you can't just flip a switch and say, 'Oh, now it's okay to do business with Iran,'" Zarate said.

Companies that deal with Iran would still face lawsuits from victims of attacks, who can sue investors and companies for aiding designated groups under the 2016 Justice Against Sponsors of Terrorism Act, which aides say is unlikely to be repealed.

Given such risks, companies may steer clear of working with Iran to escape legal and reputational risk as long as the Iranian government remains in power, said Brett Erickson, principal with Obsidian Risk Advisors.

"We're not going to see massive multi-billion-dollar commitments until things are far more cemented and politically stable," he said. "There's just a long way to go."