Tehran’s proxy wars: how Iran spends its billions
Critics say vast amounts of oil revenue goes overseas to fund foreign conflicts

Iran is facing its worst civil unrest in almost a decade, with at least 22 people killed in street demonstrations that began in a reaction to tough economic times.
Iranians were promised in 2015 that the easing of sanctions would make their lives easier, with oil revenue restored after years of embargo. But there has been no recovery. In fact, according to the BBC’s Persian service, the average Iranian is now 15% worse off than they were ten years ago.
So, where is the oil money going?
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Some protesters want Tehran to stop spending what they say is “vast amounts of money” on supporting the Syrian regime of President Bashar al-Assad, the Lebanese Shia group Hezbollah and the Palestinian Hamas movement, Deutsche Welle reports.
In an interview with The Times of Israel, Israeli government minister Yuval Steinitz says that Iran spends $1bn (£740m) each year just on Hezbollah.
Left-wing Israeli newspaper Haaretz quotes unnamed “Western intelligence sources” who claim that hardliners want to “capitalise” on money spent during Syria’s civil war to “entrench [Iran’s] presence by building a permanent air base and docking facilities on the Mediterranean coast”.
This would cost “at least hundreds of millions, if not billions”, the newspaper says, money that factions close to Iranian President Hassan Rouhani want to reserve for “improving infrastructure and providing jobs at home”.
According to Haaretz, Iran’s state-owned banks set up credit lines totalling $4.6bn (£3.4bn) for the Syrian regime in 2013 and 2015. It has paid a monthly wage to around 50,000 militia fighters, and has supplied arms “daily”, and military “advisers”.
Estimates of Iran’s total funding for Hezbollah in Lebanon vary from $60m (£44m) to $1bn a year, the newspaper adds, while Israeli intelligence estimates Iranian backing to Islamic groups in Gaza adds up to some $100m (£74m) annually.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
How developed was Iran's nuclear program and what's left now?
Today's Big Question Israel and the United States have said different things about Iran's capabilities
-
The downsides of a 'forgotten' 401(k) and how to find it
the explainer Don't leave your old retirement plan behind
-
AI chatbots are leading some to psychosis
The explainer The technology may be fueling delusions
-
How developed was Iran's nuclear program and what's left now?
Today's Big Question Israel and the United States have said different things about Iran's capabilities
-
Trump gives himself 2 weeks for Iran decision
Speed Read Trump said he believes negotiations will occur in the near future
-
What would a US strike on Iran mean for the Middle East?
TODAY'S BIG QUESTION A precise attack could break Iran's nuclear programme – or pull the US and its allies into a drawn-out war even more damaging than Iraq or Afghanistan
-
US says Trump vetoed Israeli strike on Khamenei
Speed Read This comes as Israel and Iran pushed their conflict into its fourth day
-
After Israel's brazen Iran attack, what's next for the region and the world?
TODAY'S BIG QUESTION Following decades of saber-rattling, Israel's aerial assault on Iranian military targets has pushed the Middle East to the brink of all-out war
-
Israel strikes Iran, killing military and nuclear chiefs
Speed Read Israeli officials said the attack was a 'preemptive' strike on Iran's nuclear program
-
Why Israel is attacking Iran now
The Explainer A weakened Tehran and a distracted Donald Trump have led Benjamin Netanyahu to finally act against long-standing foe
-
Israel's plan to occupy Gaza
In Depth Operation Gideon's Chariots will see Israel sending thousands of troops into Gaza later this month to seize control of the strip