Iran Threat to National Security 2023

The annual Threat Assessment of the U.S. Intelligence Community for 2023, identified Iran as the third greatest national security threat to the United States, after China and Russia. As those two countries have been covered in other reports, this paper will focus on the Iran threat, evaluating it within the framework of a PMESII analysis. PMESII is an acronym used in military and intelligence services which analyses threat countries across six dimensions: Political, Military, Economic, Social, Infrastructure, and Information.

1. Political: This dimension examines political systems, governance structures, institutions, and decision-making within a country, as well as the effectiveness of these systems and institutions. It also considers the stability or instability of the government.

The Islamic Republic of Iran (Jomhuri-ye Eslami-ye Iran), formerly known as Persia, has a population of around 88 million, and is located in Western Asia, bordering on Iraq, Turkey, Azerbaijan and Armenia, the Caspian Sea and Turkmenistan, Afghanistan,  and Pakistan, and by the Gulf of Oman and the Persian Gulf. The country is a theocratic republic, with a Shia Islamic legal framework. 

Iran regularly holds elections, but the quality of democracy is limited because of the influence of the Guardian Council, an unelected body with the power to disqualify candidates on religious grounds. Iran has a president who is elected by the people, but the president is only the head of government, not the head of state. As head of government, the president oversees the operations and implementation of government. True executive power rests in the head of state, the Supreme Leader, Ayatollah Ali Khamenei. The Supreme Leader controls numerous unelected institutions, including the security forces and the judiciary, which are used to suppress dissent and to restrict civil liberties.

Since the establishment of the Islamic Republic of Iran in 1979, the Supreme Leader has always been an Ayatollah. The founder of the Islamic Republic was Ayatollah Ruhollah Khomeini, who maintained the title of Supreme Leader until his death in 1989. He was succeeded by Ayatollah Ali Khamenei, the current Supreme Leader.

The Supreme Leader presides over the Guardian Council, which interprets legislation and elections to determine if they are consistent with the principles of Islam and the Iranian Constitution. The Guardian Council has twelve members, six of whom are appointed by the Supreme Leader. The remaining six are nominated by the Judiciary and approved by the Parliament (Majlis).

In terms of political rights, Freedom House assigns Iran a score of 4 out of 40 and civil liberties 10 out of 60. Citizens have the right to form political parties, but those parties must be loyal to the current government. Change is unlikely to come within the existing governmental framework because of the influence of the unelected bodies. In 2021, for example, the former vice president Jahangiri, was disqualified from running for president because he was determined to be a reformist.

The government is largely dominated by men from the Shiite Muslim majority. Women hold some appointed positions, but generally not powerful ones.  In the parliament, five seats are reserved for recognized non-Muslim minority groups: Jews, Armenian Christians, Assyrian and Chaldean Christians, and Zoroastrians. However, members of these groups would generally not be appointed to high-level government posts.

Corruption is rife in Iran. Transparency International assigns Iran a score of 25/100 for corruption, whereby a lower score denotes higher levels of corruption. Iran ranks 147th out of 180 nations. Much of this corruption is attributable to the Islamic Revolutionary Guard Corps (IRGC) which is above scrutiny in practice, and is protected from criticism by the media and civil society.

The Islamic Revolutionary Guard Corps (IRGC) is a military/paramilitary organization with vast political and economic power. The IRGC was formed immediately after the 1979 Iranian Revolution, tasked with safeguarding the principles of the Islamic Republic and protecting the country’s sovereignty. Under the direct control of the Supreme Leader, the IRGC controls large sectors of the economy helping fund Tehran’s activities. The IRGC also provides military assistance to entities beyond Iran’s borders, as it has done for various groups in Afghanistan, Iraq, Lebanon, Palestine, Syria, and Yemen.

The group’s mandate includes defending the nation against external threats and maintaining internal security. The IRGC is also assigned the duty of preserving the Islamic Republic’s revolutionary ideals and ensuring compliance with Islamic principles. Additionally, it has significant influence on Iran’s foreign policy, including supporting regional proxies and paramilitary groups, by providing training, weapons, and logistics. On the economic front, the IRGC is involved in a broad array of businesses, including construction, infrastructure development, energy, telecommunications, and others. It owns and operates numerous conglomerates and companies which augment the groups financing and influence.

2. Military: The military dimension of PMESII assess a country’s military strength. It is not comprehensive, however, as it mostly considers personnel and hardware. It does not consider alliances, overseas bases, or the quality of equipment or quality and experience of personnel. All of this will be covered in greater detail in a separate report.

The U.S. ranks first in global firepower. Iran ranks 17th. The U.S. population is 337 million, compared to Iran’s 88 million. The U.S. is the world’s number-two nuclear power. While it is widely suspected that Iran is working on a nuclear weapons program, to date, it seems they do not possess any nuclear weapons.

The number of active-duty troops is1.39 million for the U.S. and 575,000 for Iran. Additionally, Iran has about 90,000 paramilitary personnel. Comparing the defense budgets, the U.S. spends $762 billion and Iran $25 billion.

Aircraft – US 13,300 to Iran’s 541

fighter aircraft -1,914 to 196

Transports – 962 to 86

Helicopters – 5,584 to 126

Attack helicopters – 983 to 12

Tanks – 5,500 to 4,071

Armored vehicles – 303,553 to 69,685

Self-propelled artillery – 1,000 to 580

Towed artillery – 1,339 to 2050

Ships – 484 to Iran’s 101

Aircraft carriers – 11 to 0

Helicopter carriers – 9 to 0

Submarines – 68 to 19

Destroyers – 82 to 0

Frigates 0 to 7

3. Economic: Wars are costly to wage. Existing assets have to be deployed, possibly overseas, which is expensive. Factories need to begin churning out exhaustible resources, such as ammunition and artillery shells, as well as replacement vehicles, planes and ships. Uniforms and weapons for new recruits must also be produced en masse. Wars are generally funded by debt, with governments issuing war bonds. The ability to sell those bonds and the interest rate the government has to pay is determined by the nation’s creditworthiness, its economic condition before the war, and whether or not the country is under sanctions. The Ukraine War has underscored the power of sanctions and their ability to prevent dollars from flowing into a country deemed the aggressor. Iran would be incapable of levying meaningful sanctions against the U.S. The U.S., by contrast would be able to bring sanctions against Iran. China would most likely help Iran bypass sanctions, but in the end, the U.S. would be able to reduce the amount of money flowing into Iran, while Iran would not be able to do the same to the U.S.

The size of the potential pool of soldiers is important, as is the number of workers available to produce war materials. The U.S. labor force consists of 163 million workers, while Iran’s comprises only 28 million

Iran holds foreign currency reserves valued at $21.4 billion, while the U.S. holds about $37.5 billion. Roughly 60% of foreign currency reserves around the world are held in U.S. dollars. The U.S. does not hold as much foreign reserves as countries such as China and Japan, but this is because the U.S. government has access to more-or-less unlimited quantities of U.S. dollars.

Basic Indicators for Iran

GDP = $352.2

GDP Per capita = $5344.96

Inflation rate = 43.3%

Unemployment = 9.7%

Corruption and mismanagement, including price controls and subsidies, weigh heavily on the Iran’s economy. The reliance on oil as well as government domination of numerous industrial sectors further inhibit Iran’s development. There is also a significant brain drain as many of the most qualified people flee the country, in search of a better life abroad.

The Heritage Foundation assigns Iran an overall economic freedom score of 42.2 out of 100, making it the 169th freest country in the world. For business freedom Iran scored 38.9 out of 100, labor freedom of 50.7, monetary freedom of 40.6 and financial freedom of 10.

Investment in new businesses, as well as economic development in general, are directly correlated with the protection of property rights and enforcement of contracts. For property rights, Iran scored 25/100, judicial effectiveness 26/100, and for government integrity 20/100.

4. Social: The social dimension looks at societal and demographic elements, including social unrest, ethnic or religious tensions, and social cohesion which might weaken a country’s ability to fight a war.

Ethnicities: Persians 61% of the population, Kurds (10%), Lurs (6%), and Balochs (2%), Azerbaijanis (16%), Arabs (2%), Turkmens and Turkic tribes (2%), followed by a small number each of Armenians, Assyrians, and Georgians.

Religion: Islam is the official religion, accounting for roughly 99.4% of the population.  Shi’a Muslim (89%) and Sunni (10%). The remaining 1% is composed of Christian, Zoroastrian, Baha’i and Jewish. Christians are the largest minority religion with 250,000 to 370,000 followers, mostly of Armenian origin.

The government punishes Shi’a Muslims who they believe have failed to uphold Islamic values, while Sunnis, Christians, Jews, and other non-Muslims have all been victims of repression. Some religious minorities are effectively banned, such as Baha’i and unrecognized Christian groups. Baha’i members have been persecuted, jailed, and banned from attending university.  

The Iranian constitution allows freedom of assembly, as long as gatherings are not “detrimental to the fundamental principles of Islam.” Given the state’s interpretation of detrimental, there is effectively no freedom of assembly in Iran. Protests and unauthorized gatherings are generally met with brutal force. In 2022, the government used lethal force to suppress protests against water shortages and poor living conditions in several provinces. Human rights leaders and labor rights advocates have been arrested or punished on an arbitrary basis. Activists can even be arrested without a warrant. The lawyers who defend them can also face jail time.

5. Infrastructure: an analysis of critical systems, such as transportation networks, energy systems, telecommunications, and industrial facilities can help to determine a county’s vulnerabilities, resilience, and potential risks.

The United States has 13,513 airports while Iran has 319. The U.S. has 35 ports, but Iran only 4. In oil production, the U.S. also leads with 18,000,000bbl, compared to Iran’s 3,450,000bbl.

Proven oil reserves – U.S. 50,000,000,000bbl, Iran 210,000,000,000bbl

Natural Gas Production – US 967,144,362,000bbl, Iran 237,561,415,000bbl

Coal Production – 495,130,000bbl, Iran 2,783,000bbl

6. Information: The information dimension analyzes the flow of information, as well as the communication systems, and media within a country. This analysis helps to understand how public opinion is formed and how propaganda and disinformation are disseminated.

In Iran, there is little media freedom either on or off line. Newspapers and other media are heavily censored, and the government directs journalists as to which stories to cover and which to avoid. Critics and opponents of the government are never given a platform. Many foreign websites, including news sites and social media, are blocked. Satellite dishes are illegal, and the police have actually raided homes, confiscating dishes. Persian language journalists working abroad have had their families threatened if the state did not approve of their reporting.

Reporters without Borders Ranks Iran as 177th least free country out of 180. Television is controlled by the state, and Persian language TV broadcasts from outside of the country are jammed. State television often airs confessions extracted from political prisoners by way of torture. Over the past two years, there has been a particular crackdown on journalists with an increased number of arrests and imprisonments. In one case a journalist was sentences to 90 lashes for allegedly making false news reports. The Islamic Republic has been known to target for kidnapping Iranian journalists operating abroad, as nearly happened to journalist Masih Alinejad in July 2021.

Academia is also not free and contains a great deal of indoctrination. The Supreme Leader, Ayatollah Khamenei warned that universities should not become centers for political activities. Students and professors have been jailed for speaking out against the regime or studying or teaching material which the state disapproved of.

Digital communication is monitored by state intelligence agencies. At the same time, the Iranian government utilizes online platforms and social media to disseminate propaganda and to influence the public. To this end, troll farms have been utilized, creating fake accounts and manipulating online discourse to support Tehran’s narratives. State sponsored cyber hacking is another way that Tehran controls the information space. And while the government has access to the most modern technology, the country suffers from a massive urban/rural divide, with much of the rural population unable to access the internet.

Online activism is illegal. And, the government is looking for ways to make accessing forbidden content even more difficult. In July of last year, the parliament began considering criminalizing the use and distribution of virtual private networks (VPNs) and requiring internet users to verify their legal identities. In January, 2023, it was announced that the unauthorized sale of VPNS would be banned. 

Antonio Graceffo
Antonio Graceffo
Antonio Graceffo, PhD. China-MBA, is a China economic-analyst who has spent over 20 years in Asia, including 7 in China, and 3 in Mongolia, where he teaches economics at the American university. He is a graduate of Shanghai University of Sport and Antai College of Economics & Management, Shanghai Jiao Tong University. Additionally, he conducted three years of post-doctoral studies at School of Economics Shanghai University, focusing on U.S.-China trade, and currently studies national security at the American Military University. He is the author of 5 books about China, including Beyond the Belt and Road: China’s Global Economic Expansion and The Wushu Doctor. His writing has appeared in The South China Morning Post, The Diplomat, Jamestown Foundation China Brief, Lowy Institute China Brief, Penthouse, and others. He is a frequent guest on various TV shows, providing China commentary on NTD network in the United States.