Iran and Regional Power Competition

Introduction

Iran is one of the major powers of the Middle East. Its influence derives from its large population, geographical position, energy resources, military capabilities, missile programme, diplomatic relationships and network of relationships with regional political and armed actors.

Iranian regional power competition refers to the interaction between Iran and other regional and external powers over security, political influence, energy, territory and strategic alignment.

Iran’s regional role cannot be understood separately from the Persian Gulf, Iraq, Syria, Lebanon, Yemen, Israel, Central Asia and the wider international system.

Iran’s Strategic Geography

Iran is located at the intersection of:

• Persian Gulf
• Gulf of Oman
• Central Asia
• Caucasus
• South Asia
• Middle East

It has extensive coastlines along the Persian Gulf and Gulf of Oman.

This gives Iran access to important maritime routes.

Regional Power

Iran is generally regarded as a major regional power.

Its sources of power include:

• population
• territory
• energy resources
• military capabilities
• ballistic missiles
• strategic geography
• diplomatic networks
• industrial capacity
• relationships with regional actors

Strategic Autonomy

Strategic autonomy refers to the ability of a state to pursue independent strategic objectives without becoming fully dependent on another major power.

Iran has historically sought to preserve strategic autonomy through:

• domestic defence capabilities
• diversified international relationships
• regional partnerships
• resistance to external political pressure

Iran and the Persian Gulf

Iran’s geographical position makes it a central actor in Gulf security.

The country faces several Arab Gulf states across the Persian Gulf.

Key issues include:

• maritime security
• energy
• naval capabilities
• missile systems
• sanctions
• military alliances
• regional influence

Iran and Saudi Arabia

Iran and Saudi Arabia have historically competed for regional influence.

The competition has involved:

• Gulf security
• Yemen
• Iraq
• Syria
• Lebanon
• relations with major powers

Diplomatic engagement has periodically reduced tensions.

The relationship illustrates the concept of regional rivalry, in which two states compete for influence without necessarily engaging in direct conventional war.

Iran and Iraq

Iran has significant historical, economic, religious and political links with Iraq.

The relationship expanded following the 2003 Iraq War and the subsequent transformation of Iraq’s political system.

Iran’s influence in Iraq has included:

• political relationships
• economic ties
• religious networks
• relationships with armed groups

Iran and Syria

Iran developed a close strategic relationship with Syria during the Syrian civil war.

Iran supported the Syrian government and maintained relationships with armed groups operating in the Syrian theatre.

Syria has historically provided an important geographical link between Iran and the eastern Mediterranean.

Iran and Lebanon

Iran has maintained a close relationship with Hezbollah, a Lebanese political and armed organization.

The relationship forms part of Iran’s wider regional network.

Hezbollah’s role has made Lebanon an important component of Middle Eastern strategic competition.

Iran and Yemen

Iran has developed a significant relationship with the Houthi movement in Yemen.

The conflict in Yemen has regional consequences because Yemen is adjacent to the Red Sea and Bab el-Mandeb.

The relationship is often discussed in the context of Iran’s regional network, although the Houthis also possess their own political objectives and organizational autonomy.

Axis of Resistance

Axis of Resistance is a term used primarily to describe a network of Iran-aligned or Iran-associated actors in the Middle East.

It has included relationships involving:

• Hezbollah
• Hamas
• Palestinian Islamic Jihad
• Iraqi armed groups
• Houthis
• Syrian actors

The exact degree of Iranian influence varies from actor to actor.

Proxy Strategy

Proxy strategy refers to the use of relationships with non-state or partner actors to pursue strategic objectives indirectly.

Iran’s regional relationships are frequently analyzed through this concept.

However, the term “proxy” can oversimplify relationships because armed groups may have their own interests, leadership structures and decision-making processes.

Missile Power

Iran has developed a substantial ballistic and cruise missile capability.

Missile deterrence refers to using missile capabilities to discourage an adversary from attacking by threatening retaliation.

Missiles have become an important component of Iran’s regional security strategy.

Nuclear Issue

Iran’s nuclear programme has been a major issue in international security.

The central questions concern:

• uranium enrichment
• safeguards
• nuclear inspections
• proliferation risks
• sanctions
• non-proliferation
• regional security

Nuclear latency refers to a state’s ability to move relatively quickly toward producing nuclear weapons because it possesses advanced nuclear knowledge, infrastructure and materials, without necessarily possessing declared nuclear weapons.

JCPOA

Joint Comprehensive Plan of Action (JCPOA) was the 2015 agreement concerning Iran’s nuclear programme.

The agreement involved Iran and the United States, United Kingdom, France, Germany, Russia and China, with the European Union playing a coordinating role.

It imposed restrictions on Iran’s nuclear activities in exchange for sanctions relief.

The United States withdrew from the agreement in 2018.

Sanctions

Iran has been subject to extensive international sanctions.

Economic sanctions are restrictions imposed to influence a state’s behaviour without direct military action.

Iranian sanctions have targeted areas including:

• oil exports
• financial transactions
• shipping
• technology
• banking

Iran and the United States

Iran-US relations have been characterized by:

• diplomatic confrontation
• sanctions
• nuclear negotiations
• military tensions
• regional competition

The relationship became particularly severe in 2026. A conflict beginning in February was followed by a June agreement intended to halt large-scale fighting, but later tensions remained unresolved.

Iran and Israel

Iran and Israel have been strategic adversaries for decades.

The rivalry has involved:

• nuclear issues
• missile capabilities
• Syria
• Lebanon
• Palestinian armed groups
• intelligence operations
• direct and indirect military confrontation

The 2026 conflict significantly altered the regional security environment and demonstrated the possibility of direct interstate escalation.

Iran and China

China is an important economic and diplomatic partner of Iran.

Areas of interaction include:

• energy
• trade
• infrastructure
• diplomatic cooperation

China also seeks stable energy supplies and broader regional relationships.

Iran and Russia

Iran and Russia have developed substantial strategic cooperation.

Areas include:

• defence
• energy
• diplomacy
• regional security
• economic cooperation

The relationship reflects overlapping interests but does not necessarily imply identical strategic objectives.

Strait of Hormuz

Iran’s position near the Strait of Hormuz gives it significant strategic leverage.

The Strait connects the Persian Gulf with global maritime energy markets.

Its disruption can affect:

• oil
• LNG
• shipping
• insurance
• global inflation
• economic growth

Regional Balance

Iran’s regional power is balanced or counterbalanced by:

• Saudi Arabia
• Israel
• Türkiye
• Gulf states
• Egypt
• United States
• other external powers

This produces a complex regional security system rather than a simple two-sided rivalry.

Key Distinctions

Regional influence vs territorial control: A state can influence another country without directly controlling its territory.

Proxy vs ally: An ally may have a formal or direct state-to-state relationship. A proxy relationship normally involves a non-state actor and some degree of strategic dependence.

Nuclear latency vs nuclear weapons: Nuclear latency refers to capability and proximity. Nuclear weapons refer to actual assembled weapons.

Deterrence vs compellence: Deterrence seeks to prevent an action; compellence seeks to force an actor to take or stop an action.

Key Terms at a Glance

• Iran
• Regional power
• Regional rivalry
• Strategic autonomy
• Axis of Resistance
• Proxy strategy
• Missile deterrence
• Nuclear latency
• JCPOA
• Nuclear proliferation
• Economic sanctions
• Iran-Saudi rivalry
• Iran-Israel rivalry
• Iran-US relations
• Iran-China relations
• Iran-Russia relations
• Strait of Hormuz
• Persian Gulf security
• Regional balance of power

Related Glossaries

• 3.4 Balance of Power and Balance of Threat
• 9.3 Security Dilemma and Strategic Stability
• 9.4 Deterrence, Compellence and Containment
• 10.3 Proxy War and Asymmetric Warfare
• 11.1 Nuclear Weapons and Nuclear Strategy
• 11.3 Nuclear Proliferation and Non-Proliferation
• 11.5 NPT, CTBT and Nuclear Institutions
• 12.4 Chokepoints, Corridors and Strategic Locations
• 16.1 Middle Eastern Geopolitics
• 16.3 Gulf Politics and Energy Security
• 16.5 Türkiye and Middle Eastern Geopolitics

Conclusion

Iran is a central actor in Middle Eastern geopolitics because of its geography, resources, military capabilities, diplomatic relationships and regional networks.

Its strategic competition with Saudi Arabia, Israel, Türkiye, the United States and other actors demonstrates how Middle Eastern security operates through overlapping rivalries rather than a single regional conflict.