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Iran bolstered Lebanese Hezbollah’s (LH’s) air defense capabilities likely to establish a deterrent in Lebanon against Israel.
Palestinian militant groups called for a cohesive strategy to counter Israel and may expand their joint military operation against Israel.
Iranian diaspora media, citing Russian investigative sources, claimed on July 6 that Russia has paid Iran nearly 900 million US dollars for Iranian drone technology.
Palestinian militants thanked Iran and the broader Axis of Resistance for their help during the recent Israel Defense Forces (IDF) raid in Jenin and likely will receive Iranian assistance to rebuild the military capabilities the IDF degraded.
Iranian officials inflated the amount of Iranian funds that a recent US sanctions waiver for Iraq will provide, possibly to inspire confidence in Iran’s economy and currency. News of similar waivers for Iraq has coincided with short-term improvements for the Iranian economy.
Iran became a member of the Shanghai Cooperation Organization on July 4, which may enable it to circumvent sanctions through non-US dollar financial transactions with other SCO countries. Iran could benefit militarily from its membership in the SCO through participation in counterterrorism and naval exercises.
Iran attempted to seize two US oil tankers in the Strait on July 5, likely to assert its control over the Strait of Hormuz given the recent US naval deployments to the Persian Gulf. Iran also likely sought to pressure the US to accede to Iran’s demands in the nuclear negotiations.
The Islamic Revolutionary Guard Corps Quds Force (IRGC QF) and Lebanese Hezbollah (LH) established a headquarters in eastern Syria, probably to coordinate arms transfers, intelligence collection, and training for Iranian-backed militants in Syria.
The Syrian Arab Army (SAA) and Russian forces conducted air strikes on rebel groups in Idlib Province shortly after the failure of the latest normalization and Astana Talks, and Iran may send Iranian-backed militants to in northwestern Syria to support the pro-regime operations.
Iran's worsening water crisis is increasing food insecurity and internal migration, which will likely fuel greater popular unrest in the coming years.
The Syrian Arab Army (SAA) and Russian forces conducted airstrikes on rebel positions in Idlib Province between June 25 and 27. The head of the Russian Reconciliation Center, which is affiliated with the Russian Ministry of Defense in Syria, said the strikes responded to militants in Idlib Province that launched drone strikes into Syrian regime-held territory on June 22 and 23. He said on June 29 that the airstrikes will continue until the “elimination of militants.” The UK-based Syrian Observatory for Human Rights noted that the airstrikes are the deadliest in 2023 and resulted in at least 22 casualties. Hundreds of thousands of Syrian civilians and militants relocated to Idlib Province during the Syrian civil war, which makes it the last rebel stronghold in Syria. The US-designated terrorist group Hayat Tahrir al-Sham established an Islamist government in Idlib Province in 2017. Russia and Turkey agreed to a series of de-escalation agreements in 2017 and 2018 to stall a broader Turkish military incursion into Idlib Province. However, Russian forces and Iranian-backed militants supported the Syrian President Bashar al Assad regime in launching an offensive to retake Idlib Province in 2019, which concluded in a ceasefire agreement in 2020. Since the ceasefire, Russian forces have conducted several airstrikes on rebel positions which rarely resulted in further escalation.
Key Takeaways
Iranian-backed militants are building new military sites south of Damascus City likely as part of the Iranian effort to secure transportation routes throughout Syria and connecting to the Golan Heights and Lebanon.
Law Enforcement Commander Brigadier General Ahmad Reza Radan traveled to Moscow on June 27 to expand internal security cooperation with Russian security services.
Iran is framing the US-led international coalition in Syria as an imminent security threat to local Syrians, possibly to incite and sustain local support to expel US forces from Syria. Iran maintains the capability to attack US forces in the Middle East via its proxies but has restrained them from conducting attacks.
Law Enforcement Commander Brigadier General Ahmad Reza Radan will soon travel to Russia to increase security cooperation with Moscow. Iran may seek Russian security assistance to crack down more forcefully on Iranian anti-regime activity.
The IRGC appointed two new northwest regional commanders on June 26, indicating the regime’s focus on security threats in the area.
The 20th round of Astana talks, which aim to end the Syria conflict, concluded in Astana, Kazakhstan on June 21 without an agreement. Iran and Syria messaged ahead of the forum that their positions are aligned for quadripartite talks, possibly signaling that Iran will back the Assad regime’s demand for Turkey’s complete withdrawal from Syria as a precondition for future Astana talks.
The Iranian rial has appreciated approximately ten percent since May 1, likely in part due to the Raisi administration’s economic diplomacy efforts. The Raisi administration’s economic diplomacy combined with ongoing nuclear talks may have generated confidence in the future of the Iranian economy, consequently increasing the value of the rial.
Iranian companies are competing for Syrian electricity infrastructure contracts, likely to generate additional revenue for the Iranian economy and reinforce Iranian ties with the Syrian regime. Syrian Electricity Minister Ghassan al Zamil met with Iranian businesspeople to discuss establishing hydroelectric dams in Syria on June 20 in Damascus. This meeting comes after Iranian Energy Minister Ali Akbar Mehrabian announced that Iran will help rehabilitate the Syrian water and electricity industry on May 7. It also follows Iranian President Ebrahim Raisi’s visit to Syria from May 3-4, during which he and Syrian President Bashar al Assad signed 15 cooperation agreements and memorandums of understanding that cover oil, energy, transportation, reconstruction, and communications technology. The meeting demonstrates that Iran intends to be the primary provider of reconstruction projects in Syria.
The Syrian regime is leveraging regional normalization with Arab states to fund the reconstruction of Syria’s railways, which could block some Iranian efforts to secure revenue from such projects. The reconstruction of Syria’s rail infrastructure is likely to facilitate Iranian efforts to generate revenue through greater regional trade, nonetheless.
Iran is seeking to leverage arms sales to generate revenue for the Iranian economy.
Iran may have directed its Iraqi proxies to deescalate their rhetoric against US forces in Iraq. This is consistent with one of CTP’s hypotheses, which is that Iran is threatening attacks on US forces in Iraq and Syria to build leverage in the nuclear negotiations.
Iran and Syria coordinated their policy positions ahead of the next round of Astana talks.
Iran and Russia discussed Caspian Sea and Volga River transportation routes on June 16. The expansion of these routes could support Iran's transfer of military equipment to Russia.
Iranian President Ebrahim Raisi stressed Iran, Cuba, Nicaragua, and Venezuela’s common struggle against “imperialism and domination” on his trip to Latin America between June 12-16, suggesting that Iran may seek to incorporate these countries into its Axis of Resistance.