By Al-Fassel | 2026-07-24

The Islamic Republic has spent decades cultivating armed non-state actors across the Middle East to expand its regional influence.

Rather than relying solely on conventional military power, the Iranian regime has invested heavily in proxy groups operating beyond national government control.

This strategy has weakened sovereignty in Lebanon, Iraq, Yemen and previously Syria by empowering Tehran-backed militias over state institutions.

Critics argue that the regime's support for these groups undermines Arab states’ sovereignty and strengthens actors operating outside official government structures.

They say Tehran’s actions represent interference in neighboring countries’ internal affairs and restrict governments’ ability to exercise full authority.

Some critics describe Iran’s use of armed proxies across Arab countries as a form of "proxy occupation" that expands its influence without direct territorial control.

Regional proxies

Hizbullah remains the cornerstone of the Iranian regime's regional network and its most heavily armed and deeply integrated proxy organization.

Established with Iranian backing during Lebanon's civil war in the 1980s, the group has become the country's most powerful armed faction.

It continues maintaining close military, financial and ideological ties with the Iranian regime despite years of international sanctions and regional conflicts.

The United States has estimated the regime's annual support for Hizbullah at roughly $700 million, while recent analyses place yearly assistance near $1 billion.

Hizbullah's military capabilities and political influence have complicated Lebanon's efforts to maintain exclusive control over national security.

The Iranian regime has also provided financial, military and technical support to Yemen's Houthi movement over many years.

The rebel group has increasingly employed sophisticated drones and missiles against regional targets and international shipping lanes.

Meanwhile, numerous Iraqi Shia militias, including factions within the Popular Mobilization Forces, have received sustained Iranian backing for years.

Before Bashar al-Assad's government collapsed in late 2024, the Iranian regime similarly relied upon allied militias to preserve strategic influence throughout neighboring Syria.

Costs abroad, pressures at home

The regime has likewise supported Palestinian armed factions, including Hamas and the Palestinian Islamic Jihad, through funding, weapons and military training.

According to the US Congressional Research Service, the Iranian regime provides up to $100 million annually in combined support to Palestinian groups.

Combined assistance for Hizbullah, the Houthis, Iraqi militias and other allied organizations exceeds $1 billion annually according to independent estimates.

Some analysts estimate the Islamic Republic has spent more than $16 billion supporting the broader "Axis of Resistance" since 2012, although exact totals remain difficult to verify.

Many Iranians contrast those foreign expenditures with persistent economic hardship affecting households across the country.

High inflation, unemployment, currency depreciation and international sanctions have strained family finances for many consecutive years.

Critics argue resources devoted to proxy groups could instead strengthen infrastructure, healthcare, education and employment opportunities throughout Iran.