Iran Update, May 8, 2023
May 8, 2023 - ISW PressIran is maneuvering to economically benefit from Syria’s reintegration into the region, which may enable Iran to circumvent US and international sanctions, as well as support Iranian-backed militias operating in Syria. Iranian President Ebrahim Raisi signed 15 cooperative agreements with Syria on May 3 in a push to be the primary provider of reconstruction projects in Syria. CTP previously assessed that Iran may use the Iranian para-statal organization Khatam al Anbia or Iranian-backed proxy companies to oversee such reconstruction projects. Iranian Free Trade, Industrial, and Special Economic Zones Supreme Council Secretary Hojatollah Abdol Maleki stated on May 6 that plans to establish a free trade zone between Iran, Iraq, and Syria have entered a “technical and implementation stage.” Maleki suggested the free trade zone may extend to the Latakia port and the Al Qaim Iraq-Syria border crossing. A free trade zone through Syria, Iraq, and Iran would allow Iran to move materiel across borders without oversight that would normally enforce sanctions on trade with Syria and Iran. The Arab League voted on May 7 to readmit Syria, after which an unidentified Jordanian official claimed that the Arab League will lobby to lift Western sanctions on Syria if the Assad regime agrees to a political solution to end the crisis. The end of sanctions on Syria with the establishment of a free trade zone and Iranian reconstruction projects would enable Iran to circumvent Western sanctions on Iran.