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American Focus > Blog > Politics > The IRGC Threat Matrix: Iran’s $700 Million Proxy War Against the West |
Politics

The IRGC Threat Matrix: Iran’s $700 Million Proxy War Against the West |

Last updated: June 21, 2025 3:04 pm
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Iran’s Islamic Revolutionary Guard Corps (IRGC). Photo courtesy Iran International

In the chaotic theater of Middle Eastern geopolitics, one actor consistently steals the spotlight: Iran. From the Houthis hampering global shipping routes in Yemen to militias targeting American troops in Iraq, and from Hezbollah’s missile stockpiles poised menacingly at Israel to shadowy networks fostering extremism in Afghanistan, Iran has meticulously orchestrated an expansive proxy network throughout the region.

Since the 1979 revolution, Iran has been in the business of exporting its brand of Islamic Jihad, weaving a complex tapestry of alliances with militias that have challenged local and neighboring governments across at least six nations: Bahrain, Iraq, Lebanon, the Palestinian Territories, Syria, and Yemen. While the nuclear ambitions of Iran dominate headlines, the tangible threats posed by its proxy armies are well documented and have led to an incalculable loss of life, establishing Iran as the Middle East’s principal agent of instability. Operating through the Islamic Revolutionary Guard Corps (IRGC), Tehran effectively maintains plausible deniability as its Shia affiliates perpetrate violence against a range of communities, including Sunnis, Christians, Jews, and various religious and ethnic minorities such as Yazidis, Druze, and Alawites.

The IRGC-Quds Force, Iran’s elite paramilitary unit, is the lynchpin of this strategy, conducting extraterritorial operations under the guise of liberating Jerusalem—hence the name “Quds,” meaning “Jerusalem” in Arabic. This unit not only trains, funds, and arms terrorist organizations but also coordinates their actions globally, operating with such tactical finesse that it was designated a Foreign Terrorist Organization by the United States in 2019.

Hezbollah stands out as Iran’s most effective proxy, having positioned itself as a formidable force in Lebanon. The U.S. State Department estimated in 2020 that Iran channeled approximately $700 million annually to Hezbollah, transforming it into a militia with thousands of rockets targeted at Israel and deep political entrenchment within Lebanon. Hezbollah’s military capabilities now surpass those of the Lebanese army, effectively creating a parallel state that answers to Tehran rather than Beirut. This situation exemplifies Iran’s broader strategy—not just to sponsor terrorism but to establish enduring power bases that are difficult to dismantle.

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In Yemen, Iran’s backing of the Houthis has escalated a regional conflict into a global crisis. Following the October 7, 2023 Hamas attack on Israel, Houthi forces, supported by Tehran, have disrupted commercial shipping in the Red Sea using drones, missiles, and small boats, leading to a staggering 42 percent drop in maritime traffic through Egypt’s Suez Canal as shipping companies reroute to avoid these waters.

Tehran’s arms supplies to the Houthis date back to at least 2009, gradually increasing the sophistication of the weaponry provided. By 2015, the Quds Force was supplying missile components for local assembly. Recently, Yemeni authorities intercepted a shipment of 800 Chinese drone propellers at the Sarfayt border crossing with Oman, prompting the U.S. Treasury to sanction companies and individuals in Iran and China for their role in facilitating this arms trade.

This ongoing support has elevated the Houthis from a tribal militia to a formidable military force, boasting advanced weaponry within Iran’s “Axis of Resistance.” Between 2015 and 2021, they launched an astonishing 851 UAVs and 430 rockets or ballistic missiles at targets in Saudi Arabia, underscoring the global economic ramifications of Iran’s military assistance.

The IRGC-Quds Force’s activities extend beyond the Middle East, with a history of orchestrating attacks as far afield as Argentina, where Iranian operatives and Hezbollah were implicated in the 1994 bombing of the AMIA Jewish community center in Buenos Aires, resulting in 85 fatalities and hundreds of injuries. Argentine prosecutors have formally charged Iran, and specifically the IRGC-QF commander, with orchestrating this attack. The Quds Force has also been linked to planned assaults in various countries, including Thailand, India, Georgia, Kenya, Cyprus, and Bulgaria, alongside attempts to assassinate dissidents in Europe and the United States. This operational versatility allows Iran to project power while maintaining a strategic distance from direct accountability.

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As President Trump considers potential support for an Israeli strike on Iran’s nuclear capabilities, it’s imperative to recognize that Iran remains the principal destabilizing force within the Middle East. A targeted strike aimed at crippling Iran’s economy and disrupting the IRGC’s infrastructure could significantly impede funding to the myriad proxy groups that perpetuate conflict throughout the region.

TAGGED:IransIRGCMatrixMillionproxyThreatWarWest
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