Understanding Iran’s Non-State Network

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By John P. Ruehl      22 February 2024

During a three-day period in January 2024, Iranian-supported militant groups employed an anti-ship missile to attack an oil tanker in the Red Sea, launched rockets into northern Israel from Lebanon, and used a drone strike to kill three U.S. soldiers in Jordan. These incidents marked the extension of attacks by Iranian-backed groups in the Middle East into the fourth straight month since the outbreak of the Israel-Hamas war on October 7, 2023.

Largely diplomatically isolated since the 1979 Iranian Revolution, unable to challenge U.S. military power, and lacking the nuclear brinkmanship card held by North Korea, Iran has evolved its strategy of utilizing militant groups for decades. Iran’s Quds Force has provided training, funding, and weapons assistance to various militant groups in the region, including Hamas, Hezbollah, and the Houthis. This strategy has advanced Iran’s geopolitical interests and afforded it plausible deniability, but not all of its associates march in lockstep with Tehran.

Part of Iran’s approach involves transforming militant forces into powerful political actors. Hamas, founded in 1987 as an offshoot of the Muslim Brotherhood, gained prominence during the First Intifada against Israeli forces. Hamas grew closer to Iran during the early 1990s after the Oslo Accords initiated an ultimately failed peace process, with Iran providing financial and weapons support during the Second Intifada from 2000 to 2005. When Israeli forces withdrew from Gaza in 2005, Hamas established administrative control over the territory after winning elections the following year, and has forbade elections since.

Consolidating armed Palestinian opposition under Hamas allows Tehran to challenge Israel directly. But as a Persian and Shia Muslim country operating in a predominantly Arab and Sunni Muslim peninsula, Iran has offset its diplomatic and cultural isolation by using the Palestinian cause to criticize Arab governments growing closer to Israel in recent years. Supporting Hamas against perceived inaction from Arab leaders has been a constant feature of Iranian public messaging. Further normalization between Israel and Arab states is now paused due to the Israel-Hamas war.

While Iran denied prior knowledge of the October 7 attack, it has expressed public support for Hamas since . Hamas’s leader Ismail Haniyeh has meanwhile stated that Iran provides $70 million annually to the group in addition to ongoing logistical and weapons assistance, largely through smuggling operations . However, relations between Iran and Hamas are largely limited to opposition to Israel and the West, and Hamas also receives financial support from TurkeyQatar, and other sources.

Instead, Hezbollah has emerged as Iran’s most important non-state ally. Established as a Shia militia in 1982 during the Lebanese Civil War, Hezbollah’s significant military forces have been utilized to target Israeli and Western forces in the Middle East. Since the recent conflict’s onset, Hezbollah has launched hundreds of missiles into northern Israel, but the destruction caused by the 2006 Lebanon War against Israel has made it cautious of further escalation.

Hezbollah is also strategically valuable in its role as an envoy to other militant groups. Hezbollah has historically trained Hamas militants in weapons systems and military exercises in Lebanon and Syria. Like Iran, Hezbollah also denied knowledge of the Hamas attack on October 7, but Iranian, Hezbollah, and Hamas officials have since met regularly to discuss strategy and cooperation.

Beyond its military role, Hezbollah has evolved into Lebanon’s political powerbroker. Eight of its members were first elected to the Lebanese parliament in 1992, it joined the government for the first time in 2005and in 2018 , a Hezbollah-led coalition gained the majority of Lebanese parliamentary seats. Despite losing its majority in 2022, its lingering influence over Lebanese politics indicates that Iran remains close to a state capture-like situation, where external forces and interest groups gain systematic control over a country’s decision-making process.

Additionally, Hezbollah operates clinics, schools, banks, businesses, and other entities that have shielded it from Lebanon’s economic collapse and political stagnation since 2019, maintaining its “state-within-a-state” structure. In addition to weapons and logistical support, Iran is believed to provide $700 million to Hezbollah every year. And when sanctions diminish Iranian assistance, Hezbollah also secures funding from legal businesses to criminal enterprises, activities which span across the Middle East,

This article was produced by Economy for All, a project of the Independent Media Institute.