Key facts
- Iran's Revolutionary Guards have established covert Iraqi cells to attack Gulf neighbors.
- These cells operate directly under IRGC command, bypassing established militia structures.
- At least seven drone attacks targeting Kuwait, Saudi Arabia, and the UAE were launched between April 20 and May 17.
- The IRGC possesses a vast commercial empire spanning oil, construction, shipping, telecommunications, and ports.
- The IRGC is positioned to be a major beneficiary of any sanctions relief and economic reopening in Iran.
- Western firms returning to Iran may find themselves operating alongside or through IRGC-linked entities.
Iran's elite Revolutionary Guards (IRGC) have established covert cells in Iraq to conduct drone attacks on Gulf neighbors, bypassing established militias to maintain plausible deniability and conserve resources. These cells, each comprising about 10 elite Iraqi Shi'ite fighters, have launched at least seven drone attacks targeting Kuwait, Saudi Arabia, and the UAE between April 20 and May 17, according to Iraqi sources.
Beyond its military operations, the IRGC has cultivated a sprawling commercial empire across sectors including oil, construction, shipping, telecommunications, and ports. As Washington and Tehran potentially move towards talks on a deal to end their conflict, which could unlock billions of dollars for Iran and reopen its economy, the IRGC is poised to be a primary beneficiary. Four senior Iranian sources indicated that the force is uniquely positioned to capture a significant portion of financial rewards from sanctions relief, renewed oil exports, and foreign investment.
This deep entanglement of the IRGC in Iran's business landscape could complicate efforts to lift sanctions, as the U.S. and its allies designate the force as a terrorist organization. Western firms looking to re-enter Iran's market may find themselves operating alongside or through IRGC-linked entities, potentially facing legal exposure under U.S. laws like the Justice Against Sponsors of Terrorism Act, which allows victims of terrorist attacks to sue companies aiding designated groups.