Advanced spyware targeted Iranians before Israel war - Bloomberg

The Islamic Revolutionary Guard Corps (IRGC), which led the suborbital launch of the Qased satellite carrier on Monday, heralded the test as a feat of Iran's space program.

But the timing so soon after Iran's clash with its Mideast arch-nemesis suggests broader goals. Analysts say the launch is part of a deliberate effort to project strength and technological progress in the face of mounting pressure.

“Not only is Iran enhancing its capabilities, but it is also sending a loud political message,” said Sina Azodi, an Assistant Professor of Middle East politics at the Elliott School of International Affairs in Washington DC.

The test, he said, allows Iran to build experience with ballistic missile-related technologies without crossing thresholds that could trigger direct military or diplomatic retaliation.

That balancing act—asserting strength while avoiding escalation—is a hallmark of Iran’s strategy, according to defense experts.

Andrew Fox, a former British Army officer and senior fellow at the Henry Jackson Society, said the launch reflects Iran’s continued determination to pursue long-term military objectives despite recent setbacks.

“Once again we can see the regime trying to keep its options alive through the back door,” Fox told Iran International.

From orbit to arsenal?

Israel's military said it knocked out scores of Iranian missile launchers during its campaign and that Tehran's stocks were badly depleted.

The Qased uses technology similar to that found in ballistic missiles, and Iran’s space program has been criticized by Iran's Western adversaries as a platform for advancing military capabilities.

“The same rocket that launches satellites can launch missiles; it's the identical technology,” said Fatima Al-Asrar, a Yemeni-American policy analyst at the Washington Center for Yemeni Studies.

“The Islamic Republic calls this space research, but every test improves their ability to hit targets at long range. There's no meaningful difference between a space launcher and a ballistic missile in this instance.”

A 2019 report from the Defense Intelligence Agency concluded that expertise in space launch vehicles “can be used as a test bed for developing an ICBM (intercontinental ballistic missiles).”

Azodi said that while Iran could theoretically develop intercontinental ballistic missiles, they offer little practical value without nuclear warheads, which Iran insists it is not pursuing.

“At any rate, they help Iran with the necessary experience,” he said. “So Iran is sending the message at the time of tensions that it is enhancing its capabilities in a field that could have military applications.” Azodi emphasized that while the technologies used for satellite launches and ICBMs are related, they remain technically distinct—though the former can provide valuable learning for the latter.

The January 2024 launch of the Soraya satellite aboard Iran’s Qaem 100 rocket has drew a sharp response from Britain, France, and Germany—the so-called E3—who warned that the launch vehicle used the same base technology as long-range ballistic missiles.

Kasra Aarabi, director of research on Iran's Revolutionary Guards at US advocacy group United Against Nuclear Iran, said the latest Qased test should push European powers to consider triggering the so-called snapback of United Nations sanctions.

“The Islamic Republic's latest test will make the triggering of the Snapback mechanism by the E3—Britain, France, and Germany—all the more crucial to limit Iran’s capabilities and resources,” Aarabi said.

For Tehran, though, the message is clear: the war with Israel may have exposed vulnerabilities— but it hasn’t shaken its drive to project power across the region—and beyond.

Some London-based underwriters offering war risk insurance for ships on these routes now mandate specific security measures, according to the report, including a certain number of firearms, ammunition and onboard armed personnel.

The decision follows a July 7 attack in which Houthi forces in Yemen launched drones and rockets at a cargo ship off the Yemeni coast, killing two crew members.

London insurers reportedly incurred a 40-million-dollar loss due to the attack, The Telegraph said.

Shipping insurance companies consider the waterways near Iranian territory to be high-risk due to Iran-backed Houthi attacks in Yemen and ongoing tensions between Iran, Israel, and the United States.

The Telegraph also reported that vessels recently docked in Israel or sailing under certain flagged states are struggling to secure insurance, as they are considered more likely to be targeted.

Since the beginning of its term, the Trump administration designated the Houthis a foreign terrorist organization and launching a series of airstrikes aimed at disrupting the group’s attacks on shipping lanes and missile launches toward Israel.

Oman brokered a ceasefire in May between the United States and the Iran-backed group which held until the Houthis attacked and sank a cargo ship on July 6 in the Red Sea.

The sanctions target companies based in Yemen and the United Arab Emirates, including Arkan Mars Petroleum and its UAE affiliates, which the US Treasury said coordinated the delivery of $12 million worth of Iranian oil to the Houthis through Yemen’s Ras Isa port.

The transfers allegedly involved Iran’s Persian Gulf Petrochemical Industry Commercial Company (PGPICC), a firm linked to the Revolutionary Guards.

“The Houthis collaborate with opportunistic businessmen to reap enormous profits from the importation of petroleum products and to enable the group’s access to the international financial system,” said Deputy Treasury Secretary Michael Faulkender.

“These networks of shady businesses underpin the Houthis’ terrorist machine.”

The Treasury said the Houthis earn hundreds of millions of dollars annually by taxing petroleum imports and reselling fuel at marked-up prices in areas under their control.

“Unfortunately, we will probably see rationing in most parts of the country soon,” Reza Sepahvand, a member of Iran’s parliamentary energy committee was quoted as saying by the Iranian outlet Tejarat News

“In some cities, this has already started,” he added.

Iranians have increasingly complained of water outages in the capital which began last week.

Reports to Iran International's submissions line indicate worsening water quality and intermittent cuts not only in Tehran but also in West Azarbaijan, Razavi Khorasan and Khuzestan provinces.

Sepahvand said the crisis is the result of long-standing failures to locate water-intensive industries in appropriate areas.

“Industries like steel and petrochemicals should have been built along the Persian Gulf, but instead they were placed in the heart of the desert,” he said. “This has led to expensive and incomplete water transfer projects.”

Sepahvand added that the situation has been worsened by climate change and reduced rainfall.

In a cabinet meeting on Sunday, Iran's President Masoud Pezeshkian cited a dire report from the energy ministry and warned that the water crisis was more severe than acknowledged.

“The water crisis is more serious than what is being discussed today, and if we do not take urgent action now, we will face a situation in the future for which no remedy can be found,” Pezeshkian was quoted as saying by state media.

Iran's government declared a public holiday for Wednesday in Tehran Province due to ongoing extreme heat and the need to conserve water and electricity, spokesperson Fatemeh Mohajerani announced.

Earlier on Tuesday, local media citing a spokesman from the Tehran Water and Wastewater Company reported that drinking water could be distributed in hygienic plastic pouches in case of supply cuts.

However, the company later denied it had any such plans.

The outlet said Araghchi’s acknowledgment that the US strikes caused “serious damage” to nuclear facilities and led to a halt in enrichment signaled weakness.

“Our facilities have been damaged – seriously damaged,” Araghchi said. “The extent of which is now under evaluation … enrichment has currently ceased.”

Fars called the remarks exaggerated and warned that such statements could be viewed as a sign of excessive flexibility, encouraging the West to increase pressure on Iran.

The agency linked the remarks to a recent comment by US President Donald Trump, who said, “If necessary, we will strike again.”

Araghchi downplays fatwa targeting Trump

Fars also criticized Araghchi for dismissing a clerical fatwa calling for the killing of Trump as a move by “radical groups.” The decree, issued by two senior Iranian clerics, has drawn support from others and sparked online fundraising.

Fox News anchor Bret Baier asked Araghchi directly about the fundraising activity. In response, Araghchi distanced the government from the fatwa, a stance Fars said signaled weakness and undermined Iran’s unified position against what it called foreign aggression.

In the same interview, Araghchi also addressed the slogan “Death to America,” saying it is aimed at US foreign policy, not the American people. “It means death to US foreign policy, not death to the people,” he said.

A statement from Iran’s parliament last week said the slogan means “death to Trump” and “those who rule America,” directly targeting US leaders.

Iran denies seeking Israel’s destruction

The interview also drew attention for Araghchi’s comments about Iran’s position on Israel. When asked about threats from Iran-backed groups to wipe Israel off the map, he said: “That is up to them… but this has never been Iran’s policy to wipe out Israel from the map.”

Fars did not directly reference that part of the exchange, but the remarks contrast with statements made by Supreme Leader Ali Khamenei and other Iranian officials over the years expressing support for Israel’s elimination.

Despite affirming Iran’s right to nuclear enrichment, Iran's top diplomat failed to maintain the right balance between diplomacy and deterrence, Fars said.

The interview aired ahead of renewed nuclear talks with Britain, France and Germany, as Tehran faces threats of a UN snapback mechanism and possible reimposition of international sanctions.