How Are Iran’s Proxies Doing Amidst a Weakened Regime?

Summary

In this episode Farzin Zandi revisits his 2025 analysis of Iran’s gray‑zone strategy, assessing how the regime’s weakened state after the 12‑day war has eroded the morale, funding, and deterrence of its proxy network. He explains that proxy financing remains tied to volatile oil revenues and a sophisticated sanctions‑evasion system, but arms transfers—especially to Hezbollah—are now severely constrained by regional pressure. Zandi warns that internal crises, mass protests, and the international terrorist designation of the IRGC further limit proxy operations, forcing groups to either collapse or seek new, less reliable funding streams.