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ANALYSIS

Striking the veil: dual-use targets and the calculus of Iranian support

Shahram Kholdi
Shahram Kholdi

International Security and Law Analyst

Apr 5, 2026, 22:25 GMT+1Updated: 05:05 GMT+1
A research centre at Tehran's Shahid Beheshti University is destroyed by US-Israeli strikes, April 4, 2026
A research centre at Tehran's Shahid Beheshti University is destroyed by US-Israeli strikes, April 4, 2026

In these fateful weeks, strikes thunder against steel plants at Mobarakeh and Khuzestan, sites tied to the Pasteur Institute, vital transport arteries, and facilities of Shahid Beheshti University—formerly Melli University.

They ignite fierce controversy, yet they also summon an unexpected surge of public approval across Iran. Civilians dispatch streams of video clips to Iran International. The clips capture Iranians who voice heartfelt gratitude to President Trump and Israeli Prime Minister Netanyahu for striking at the very sinews of the regime’s repressive machine. These voices of thanks now confront a sterner question: Can the free world justify blows against targets that the regime has cunningly woven into the fabric of civilian life, without exacting a price too heavy for the Iranian people to bear?

For decades, the Islamic Republic has masterfully blurred the frontier between civilian and military domains and has woven them into a single, sinister tapestry. Nowhere does this fusion reveal itself more starkly than at the Pasteur Institute. Long before the present strikes, foreign governments sounded the alarm on proliferation dangers. Japan designated the institute an entity of concern for biological and chemical weapons capabilities in 2007. Britain followed in 2008. U.S. Department of Justice records from 2014 expose illicit transfers of sensitive equipment linked to covert programmes. Research has shown how the regime, by the early 1990s, quietly transplanted elements of its biological weapons research into civilian cover at the Pasteur and Razi Institutes, masquerading under the noble guise of vaccine development and medical science. Open sources may yield no final smoking gun of active weaponisation on the day of the strikes, yet the entrenched pattern of state-directed dual-use work demands unflinching scrutiny of these sites.

The regime carries this dark art far beyond the laboratory walls. In late 2022 and early 2023, the regime unleashed chemical assaults on girls’ schools spanning 91 institutions across 20 provinces, mere months after the Woman, Life, Freedom protests erupted. These attacks poisoned over 1,200 students with toxic gas and sent them to hospitals in agony. UN experts and Amnesty International branded the campaign deliberate. The regime singled out high school teenagers—the very cohort, together with university students, that will form the backbone of any future uprising against tyranny. Its feeble response and contemptuous dismissal of the victims’ suffering as mere “hysteria” only fuel the gravest suspicions of complicity. Such a damning record forbids any illusion that sites like the Pasteur Institute stand as pure civilian sanctuaries. It warns, moreover, that once the present storm passes, the regime may unleash similar horrors against ever wider ranks of Iran’s youth.

Academic halls face the same grim reckoning. Probing investigations by The Globe and Mail and The Guardian unmask how researchers from Sharif University of Technology, Amir Kabir University of Technology, and Isfahan University of Technology—often tied to IRGC channels—pursued advanced training and partnerships at Western seats of learning: the University of Waterloo in Canada, leading Australian institutions, and Britain’s finest, including Southampton, Imperial College London, and Cambridge. Their work has zeroed in on microwave engineering, radio frequency systems, missile guidance, and drone propulsion. When the regime systematically bends scholarly pursuit toward the engines of war, strikes on facilities at Shahid Beheshti University strike not at innocent learning, but at the regime’s own ruthless decision to militarise the academy. The April 3 strike on the university’s Laser and Plasma Research Institute targeted a node long flagged in sanctions and proliferation reporting as part of Iran’s military-relevant nuclear research base. Although open sources do not prove formal subordination to the regime’s weaponisation ecosystem, the overlap of sanctioned infrastructure, dual-use research, and personnel tied to that ecosystem leaves no doubt the site served as a scientific-military enabler.

The regime chooses its infrastructure with the same cold calculation. Steel complexes at Mobarakeh and Khuzestan form vital chokepoints that feed materials straight into missile casings and drone airframes. Fuel depots permit sharper, more discriminating pressure than sweeping assaults on power stations, which risk widespread yet reversible blackouts that weigh heavily on civilian spirits—while many regime strongholds simply switch to backup diesel generators. Reckless blows against the electrical grid would crush the hopes of the very citizens who now cheer these targeted strikes and drive them to doubt whether Trump and Netanyahu truly stand with them in the struggle to cast off their oppressors. History and bitter experience confirm that simply hitting generators or broad power plants fails to deliver decisive results; such strikes prove reversible, psychologically burdensome, and ultimately counterproductive when the goal is to sustain civilian support.

The regime adapts with relentless speed and raises the stakes for every strike. Senior government meetings and high-ranking state and IRGC sessions now convene in hospital basements. Checkpoints wind beneath bridges and into civilian tunnels. Ammunition piles up inside schools and apartment blocks across Tehran and beyond. Repressive units park motorcycles amid playgrounds and stash weapons and gear within residential buildings. These cynical manoeuvres transform everyday civilian spaces into living shields. The IRGC even disguises missile launchers as ordinary civilian trucks and trailers, a tactic analysts long warned would turn legitimate civilian transport into legitimate targets once war begins. In the coming three weeks, special forces may well prove essential to root out these embedded elements from populated zones and restore the precision that air power alone can no longer guarantee—lest the forces choking Iran’s people escape justice.

The regime’s reply comes as no surprise: its chieftains pledge fiercer crackdowns, denser checkpoints, and deadly force against all who dare celebrate the strikes or whisper dissent once the operations ebb. This wave of vengeance may yet merge with Iraqi proxy militias and the chemical agents the regime has already tested—turned once more against the youth who could ignite the final revolt. More than two dozen top architects of repression and proxy warfare still walk free, even as President Trump holds open the door to talks with factions of this same leadership.

No honest appraisal can ignore the stern limits of air power. Strikes may shatter production lines and fracture command chains, yet they rarely succeed in uprooting deeply entrenched machines of control on their own. Today the IRGC rules the Islamic Republic outright and maintains a symbiotic relationship with the Friday prayer imams who stir ideological fire while the Guards command the apparatus of intelligence and terror. The regime forged that machinery under Qassem Soleimani. It hardened the apparatus through the convulsions of 2018 and 2019 and redoubled its grip after the recent 12-day war with Israel. Its leaders have drawn a bleak conclusion: in any grave external assault, survival demands an ISIS-like creed—sacrificing the nation’s wealth as fuel for endurance, clinging to power through illicit petrochemical sales, and coldly converting schools, hospitals, and mosques into human shields for protection and resupply. The clerical-military edifice stands engineered to endure distant strikes; air power alone appears unlikely to bring it down.

History provides a relevant, if imperfect, frame. In Nazi-occupied Europe—across France, the Netherlands, Belgium, and Norway—Allied strikes imposed hardship on civilian populations. These societies contained significant collaborator elements, yet large portions of the population endured such costs because they identified the occupying power as the principal source of oppression. The analogy does not map perfectly onto present conditions; it clarifies a central dynamic: external pressure can align with internal sentiment when a regime loses its claim to represent the nation. Recent heavy US airstrikes on Hashd al-Shaabicolumns at the Shalamcheh border crossing confirm the pattern: entire battalions of Iraqi proxies, already inside Iranian customs zones and awaiting clearance, suffered devastating explosions while attempting to reinforce the regime’s repressive machine. The current outpouring of Iranian gratitude stands out for its clarity and courage; it imposes a sacred duty to strike with the precision that honours this trust and avoids any needless shadow on the cause of liberty.

By its reckless actions and heavy reliance on foreign proxies, the Islamic Republic has already invited the decisive intervention now underway by Israel and the United States on both domestic and international fronts. The allies press forward in this ongoing campaign. Should momentum falter, the regime may survive in a weakened, hollowed-out form — a theocratic shell that operates much like the ISIS caliphate in its final days: sustained by illicit petrochemical sales and extortion, while ruthlessly exploiting civilian sites as human shields and treating national resources as expendable fuel for its own perpetuation. Such a remnant would endanger regional stability. It would threaten energy security through the Strait of Hormuz. It would undermine President Trump’s repeated assurances that help is on the way for the Iranian people’s liberation. And it would imperil the preservation and expansion of the Abraham Accords.

History and hard experience—from other cases in the region and beyond—demonstrate that the only viable course is sustained, precise pressure on the regime’s dual-use infrastructure and proxy networks. Broad, indiscriminate attacks on electrical grids or power plants have repeatedly proven insufficient and often counterproductive; they risk alienating the very population whose confidence history shows must remain intact if the regime is ever to fall. A key measure of risk mitigation lies in keeping the native Iranian population firmly on board. The regime, sensing its grip slipping, now exhibits features of a system that sustains itself in a manner comparable to late-stage insurgent entities. It relies on illicit resource flows, uses civilian infrastructure as cover, and depends on foreign proxy forces. This hollowed yet resilient structure resembles, in operational terms, the final phases of ISIS control, where survival overrides governance and civilian life becomes instrumentalised as protection. The regime stands ready to turn the country into scorched earth—sacrificing national resources and civilian infrastructure—to tighten its hold. If checkpoints, urban choke points, proxy formations, and the remaining senior IRGC command structure continue to function, they will retain the capacity to suppress any renewed anti-regime mobilisation. Only when the regime has significantly degraded or neutralised these instruments of control can the balance between state power and societal action shift meaningfully. The Iranian people themselves, who have largely welcomed these measured strikes, hold the ultimate power to shape their nation’s future. Decades of half-measures have sustained this system. Only sustained clarity and disciplined resolve that preserves their confidence can open a realistic path to genuine change.

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UAE crackdown could hit Iran’s wider shadow network, experts say

Apr 5, 2026, 05:34 GMT+1
•
Negar Mojtahedi

The UAE’s recent arrest of IRGC-linked money changers could expand into a broader crackdown on Iran’s shadow financial network, experts said on this week's episode of Eye for Iran podcast.

Earlier this week, UAE authorities detained dozens of money changers tied to financial entities linked to Iran’s Revolutionary Guards, shut down associated companies and closed their offices, sources familiar with the matter told Iran International.

The crackdown followed days of mounting regional tensions and came after other measures targeting Iranian nationals, including visa revocations and tighter travel restrictions through Dubai.

While the initial crackdown appears focused on exchange houses and foreign-currency procurement, the bigger question now is whether Emirati authorities are prepared to move deeper into the far larger ecosystem of front companies and free-zone entities that have long enabled Iran’s oil, petrochemical, metals and procurement networks.

That next step could determine whether this is a structural threat to one of Tehran’s most important offshore financial systems.

“It’s unclear, I think we’ve got to wait and see the extent of the crackdown,” Miad Maleki, former senior US Treasury sanctions strategist and a senior fellow at the Foundation for Defense of Democracies (FDD) said on Eye for Iran podcast.

“If it only has to do with the current crackdown....whether it’s really limited to IRGC's foreign currency procurement activities in Dubai, which is significant or it goes beyond that and they’re going after Iranian connected companies in free zones," said Maleki.

That distinction matters.

For years, Dubai’s exchange houses were only the most visible layer of Iran’s shadow economy. Beneath them sits a much deeper network of shell firms, nominee ownership structures, commodity brokers and free-zone companies often run by third-country nationals.

According to Maleki, many of those firms were designed precisely to hide any direct Iranian fingerprints.

“Usually, the connections to Iran are nothing. There are no Iranian hands or fingerprints over these companies,” he said.

“There are third country nationals, Indians and Pakistani nationals who are running these companies and you have an Emirati national who is only on paper as the owner.”

That architecture has allowed Iranian petrochemical, petroleum and metals businessmen to move funds, settle transactions and procure goods while remaining beyond the immediate reach of sanctions enforcement.

Daniel Roth, research director at United Against Nuclear Iran, said the sophistication of those structures is exactly what makes the next phase of enforcement so consequential.

“It has been a sophisticated operation to the extent that anybody working in just the general compliance AML unit, say in the west wouldn’t necessarily know that this is,” Roth said on Eye for Iran.

He warned that seemingly generic corporate branding can make sanctions-linked entities difficult to detect.

“If I’m going to be a little bit more clever than that, and obviously I’m getting to use a name like some generic name, some boilerplate name.”

Roth added that the opacity of Dubai’s business ecosystem has historically made ownership trails difficult to establish.

“The Dubai environment or the financial system, it is quite opaque.”

That opacity becomes even more important when looking beyond money changers and toward the free-zone corporate structures that may still remain untouched.

Mohammad Machine-Chian, a senior journalist covering economic affairs at Iran International, said the economic stakes of a broader move into shell companies could be enormous.

“So all in all, I think it’s fair to estimate around $8 to maybe $15 billion a year,” he said, referring to the Dubai channel’s role in supplying hard currency.

“In this scenario, they’re expected to lose much more, maybe between at least $15 to $20 billion.”

If authorities expand the crackdown into those deeper layers, the consequences for Tehran could extend far beyond exchange houses.

It would raise the cost of moving oil proceeds, complicate hard-currency conversion, threaten procurement channels, and strike at the free-zone companies that have long helped disguise Iranian-linked exports.

For now, that remains the unanswered question.

The arrests have exposed the first layer of Iran’s financial architecture in Dubai.

Whether the UAE is prepared to absorb the economic and political costs of moving against the deeper shell-company maze may determine whether Tehran’s most important offshore pressure valve is merely disrupted or fundamentally dismantled.

You can watch Eye for Iran on YouTube or listen on any podcast platform of your choosing.

For Washington and Tehran, negotiations are still part of the war

Apr 3, 2026, 19:36 GMT+1
•
Ata Mohamed Tabriz

Iran and the United States may prefer an end to the war, but the gap between the minimum terms each side could accept is so wide that a deal remains unlikely for now.

What we are more likely to see instead are continued displays of power intended to shape the terms of any eventual agreement.

For now, negotiations speak the language of war more than diplomacy. When Washington talks about “progress” or “flexibility,” it is not simply describing talks; it is projecting the idea that military pressure is forcing Iran toward an American framework for ending the conflict.

Tehran’s denial of negotiations serves a similar purpose. Rejecting reports of talks helps prevent any existing contacts from being interpreted as evidence of weakness or submission.

Nor will the outcome depend only on Washington and Tehran. Regional actors will seek a role in shaping any settlement, and any country or coalition attempting to reopen the Strait of Hormuz will attach its own demands to the process.

Washington’s rhetoric reflects this struggle over narrative as much as over territory. In the second week of the war, the US defense secretary said that “at every stage, the conditions of the war will be determined by us.” Similar language echoes in Donald Trump’s repeated threats to send Iran “back to the Stone Age.”

Yet military power becomes a real victory only when it can be translated into a political settlement. When US officials speak about “progress in negotiations,” they are attempting to move from delivering blows to defining the outcome.

The very need to emphasize negotiations suggests that this transition remains incomplete. If battlefield superiority had already produced a decisive political result, Washington would have little reason to stress mediation and contacts.

The rhetoric also serves audiences beyond Tehran: financial markets, domestic politics, and allies trying to assess the war’s trajectory.

Israeli objectives further complicate the picture. US officials have acknowledged that Washington’s goals differ from those of Israel, which appears more focused on weakening Iran’s leadership.

Tehran’s definition of victory is also different. For the Islamic Republic, success means preserving the regime while reshaping the balance of power in the Strait of Hormuz.

Admitting negotiations under intense military pressure and under Washington’s conditions would risk appearing politically subordinate. Denial therefore becomes part of the struggle over legitimacy.

At the same time, Iran’s leadership—its military weakened and many senior figures killed—also needs a way out of the conflict. It must keep communication channels open while ensuring those contacts cannot be portrayed as retreat.

Iran’s strategy is therefore less about proving it has won than about preventing the United States from presenting its victory as complete. Tehran may not be able to claim triumph outright, but it seeks to ensure Washington cannot dictate the outcome alone.

Trump’s push for negotiations may also serve another purpose: testing where real power lies inside Iran. Every reported contact, denial, or proposed channel becomes a way of probing who still has the authority to make decisions.

Reports of fractures inside Iran’s leadership since the war began suggest uncertainty over that question. In wartime conditions, however, the Revolutionary Guards appear to hold the strongest position within the system.

Meanwhile, mediators are beginning to shape the diplomatic landscape. Turkish Foreign Minister Hakan Fidan recently suggested that neither Washington’s nor Tehran’s demands will remain at their current levels, and that the task of mediators is to bring those positions closer to political reality.

But mediators are not neutral actors. Any settlement will also reflect their own interests in the region’s future energy and security order.

These states are caught between two fears: they do not want the Gulf to become a permanent instrument of Iranian pressure, yet they are also wary of confronting Tehran alone if Washington eventually disengages.

For now, mediation reflects less a drive for peace than a shared effort to contain instability.

Diplomacy has become another arena in the struggle to shape the balance of power emerging from the battlefield. As long as both Washington and Tehran continue to claim the upper hand, escalation remains more likely than compromise.

For now, what passes for diplomacy is the management of collapse, not the architecture of peace.

Trump’s ‘Stone Age’ threat draws fury from Iranians

Apr 3, 2026, 19:19 GMT+1
•
Maryam Sinaiee

President Trump’s threat to bomb Iran’s infrastructure and “send it back to the stone ages,” followed by strikes that reportedly included a not-yet-opened bridge, has sparked anger among Iranians at home and abroad.

Iran’s president Masoud Pezeshkian condemned the remarks, writing: “Does threatening to send an entire nation back to the Stone Age mean anything other than a massive war crime? … History is full of those who paid a heavy price for their silence in the face of criminals.”

Ground Forces commander Ali Jahanshahi, warned to send US troops “not to the Stone Age but to pre-Stone Age.”

International reactions have also been critical. Former IAEA chief Mohamed ElBaradei accused Trump and Israel’s prime minister Benjamin Netanyahu of “employing horrific methods” and quipped, “I truly don't know who belongs to the Stone Age!”

Former Swedish prime minister Carl Bildt also weighed in, saying Iranians want “a decent and representative government” not being bombed back to the Stone Age.

‘War crimes’

Anger also surged among ordinary Iranians and diaspora communities—many of whom oppose the government but object strongly to threats against national infrastructure and civilian sites.

Strikes on health facilities such as the Pasteur Institute of Tehran have heightened sensitivities about civilian harm.

Hadi Partovi, a technology investor with Iranian roots, framed the issue in moral terms: “Many Iranians supported your war because your plan was to liberate Iran. Instead, you celebrate sending a civilization to the Stone Age. Great leaders build, not destroy… I weep to see America like this.”

London-based human rights lawyer Shadi Sadr accused Western governments of hypocrisy, arguing that initial justifications under the “Responsibility to Protect” have given way to actions that “send those same people back to the Stone Age, committing war crimes on a massive scale.”

Tehran-based journalist Yashar Soltani wrote: “You first spoke of ‘liberating Iran.’ Then you bombed a school in Minab and took the lives of children. And today you speak of dragging Iran back to the ‘Stone Age’.”

“Iran is a land that, when many nations were still in the Stone Age, was building cities, writing laws, and creating civilization,” he added.

Rift over costs of war

Despite widespread criticism, reactions among Iran’s opposition have not been uniform.

Some supporters of regime change argue that damage to infrastructure, while painful, can ultimately be repaired. They point to historical precedents such as the Iran–Iraq War, when key facilities including oil refineries and export terminals were rebuilt after extensive destruction.

Others contend that the Islamic Republic’s long-term impact on governance, the economy and human capital outweighs the immediate damage caused by military strikes. For them, the focus should remain on political repression, including executions and internet shutdowns.

One social media user questioned priorities: “How can your infrastructure and the Stone Age be your priority before you even mention the executions and internet shutdowns!”

Another argued that reconstruction would follow regime change, writing: “Don’t worry about iron and concrete; worry about a homeland occupied by incompetence… after that, a free Iran will build infrastructure worthy of the name Iran.”

Some commentators have also suggested that Trump’s rhetoric was directed primarily at Iran’s ruling establishment rather than the public. “When he says… ‘we’ll hit you and send you back to the Stone Age,’ he’s talking to the clerics, not the people,” one user wrote.

War follows us Iranian scientists far from home

Apr 2, 2026, 04:46 GMT+1
•
Ebrahim Karimi

I have learned as an Iranian-American scientist that war and politics rarely remain outside the laboratory for scholars from the Middle East, following us into our visas, our collaborations and even our ability to concentrate on our work.

To be born a scientist in the Middle East, and particularly in Iran, is to inherit constraints that shape your education, your mobility and often your sense of belonging long before you publish your first paper.

For many students, the obstacles begin early. Access to higher education can depend on geography, religion, ethnicity or family background. Certain research topics are restricted. Background checks are routine. Resources are uneven.

These constraints do not extinguish ambition. Many of the most driven students I have met from the region have worked relentlessly to overcome barriers that would discourage others. A significant number succeed in gaining admission to leading universities abroad, often ranking among the strongest in their cohorts.

But leaving does not mean leaving politics behind.

Students from Iran and other parts of the Middle East frequently undergo additional security screening when applying for visas or research permits in Western countries. Even when governments recognise the vulnerability of marginalised groups, the bureaucratic process can be prolonged and uncertain. Delays disrupt research timelines, funding and family life.

For a graduate student on a fixed stipend, uncertainty is not an abstraction. It is rent, tuition and the ticking clock of a degree.

Once abroad, the challenges evolve rather than disappear entirely. Family, friends and history bind students to their countries of origin. Political upheaval, internet shutdowns, military escalation or widespread protests reverberate across continents.

During periods of unrest, many students feel a moral obligation to support loved ones financially and emotionally. They spend hours each day checking the news, supporting movements on social media, translating information, sending money and making calls at odd hours.

Research suffers. Sleep suffers. Concentration suffers. The entire laboratory feels the impact when one member is under acute stress.

Political manipulation and disinformation can deepen divisions within diaspora communities, leading to heated disputes that further isolate students already under strain.

I have lived through several such cycles as a graduate student and now as a professor. Today I receive daily messages from students—via email, on social media or during meetings—asking for advice. My guidance is simple, though not easy to follow: help where you can, avoid corrosive debates and focus on your research and your long-term goals.

This tension between civic conscience and scientific focus is what I think of as a form of geographic discrimination. Events far beyond one’s control can disrupt internet access, travel, funding and collaboration, affecting thousands of scientists across the globe simply because of where they were born.

The current conflict involving Iran, Israel and the United States illustrates this clearly. Universities and schools have closed. Conferences and workshops have been postponed or cancelled. Laboratories face interruptions, whether from direct damage, security restrictions or the displacement of staff and students.

Even when military actions are described as targeted, research institutes and surrounding civilian infrastructure are not immune to the shock.

Recent strike damage near civilian educational facilities in Iran, which cost the lives of 160 students, and the previous attack on the Weizmann Institute of Science in Israel are reminders that scientific ecosystems are fragile. Rebuilding infrastructure takes years. Rebuilding trust and a sense of safety can take longer.

The long-term cost is not measured only in damaged buildings or delayed experiments. It is measured in lost collaborations, abandoned projects and the quiet departure of talented young people who decide that stability matters more than prestige.

Science thrives on openness, mobility and sustained concentration. War undermines all three.

When we speak about geopolitical conflict, we often focus on borders, strategy and power. We speak less about research teams fractured by forces entirely outside their control.

If we value scientific progress, we must recognise how deeply it depends on the human beings who carry it forward. For many scientists from the Middle East, war is not a distant headline. It is an interruption that follows them into the laboratory and into the quiet hours when research demands clarity of mind.

Protecting science, in times of conflict, means protecting them as well.

War tests Iran’s Dubai trade lifeline

Apr 1, 2026, 21:23 GMT+1
•
Dalga Khatinoglu

The war pitting the United States and Israel against Iran is being fought across airspace and shipping lanes, but one of its most consequential economic effects may be unfolding elsewhere: the fragile commercial relationship between Tehran and the United Arab Emirates.

A series of recent economic measures taken by the UAE following Iranian attacks on Emirati infrastructure has exposed how deeply Iran’s external trade depends on Dubai’s role as a financial and logistical gateway.

The steps—ranging from restrictions on Iranian nationals to disruptions in financial and trade channels—highlight both the extent of interdependence between the two economies and the vulnerabilities that accompany it.

Iran’s consulate in Dubai confirmed that more than 1,200 Iranians were repatriated through indirect routes via Armenia and Afghanistan after direct travel links were suspended.

More consequential than these immediate measures, however, is the disruption of bilateral trade flows. The UAE is Iran’s second-largest trading partner after China and serves as a critical gateway for imports.

No container ships have been seen crossing from Emirati ports to Iran since the start of the conflict, according to Rebecca Gerdes, an analyst at data company Kpler.

According to official data, Emirati exports to Iran rose from about $5.2 billion in 2018—when the United States withdrew from the nuclear deal—to roughly $23 billion in recent years, accounting for more than one-third of Iran’s total imports.

Iran’s non-oil exports to the UAE have also grown, rising from $5.7 billion to nearly $8 billion.

Data from Kpler, seen by Iran International, indicates that Iran exports about 160,000 barrels per day of fuel oil (mazut) to the UAE, along with smaller volumes of other petroleum products such as LPG.

Services trade constitutes another vital channel. Iran imports roughly $23 billion in services annually—including logistics, engineering, insurance and trade facilitation—of which the UAE accounts for about 22 percent.

A substantial portion of this economic relationship also operates outside formal channels. Iran is estimated to import more than $20 billion worth of smuggled goods each year, much of it routed through the UAE.

Dubai has also served as a key node for currency exchange networks, document falsification related to oil shipments and other mechanisms used to circumvent international sanctions. Iranian exchange houses have played a central role in facilitating these activities.

Recent reports suggest that dozens of exchange operators with alleged links to Iran’s Islamic Revolutionary Guard Corps have been detained in the UAE as tensions escalated. While the full scope of these actions remains unclear, they point to a broader effort by Emirati authorities to tighten enforcement and limit illicit financial flows.

Iran’s recent military actions have targeted multiple locations in the UAE, including Fujairah—the country’s only oil export terminal outside the Strait of Hormuz—raising concerns about energy security and trade continuity.

A recent Goldman Sachs report warned that a prolonged closure of the Strait of Hormuz could reduce the UAE’s GDP by as much as 6 percent in April alone, underscoring the broader regional economic risks posed by the conflict.

Yet the same dynamics also expose Iran’s vulnerabilities. The UAE’s role as a commercial, financial and logistical hub makes it difficult to replace in the short term.

Few countries possess the infrastructure, geographic proximity and established trade networks required to replicate Dubai’s function in Iran’s economic ecosystem.

Whether the UAE’s response becomes a decisive pressure point for Iran will depend on both the duration and the breadth of the restrictions.

In the short term, disruptions to trade, finance and logistics are likely to raise costs and complicate supply chains for Iranian importers. Over the longer term, sustained constraints could push Tehran to diversify routes and partners, though replacing the UAE’s role would be neither quick nor straightforward.

For now, the trajectory of tensions suggests that friction with the UAE may emerge as one of the most consequential external challenges to Iran’s trade architecture long after the current conflict subsides.