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Iran Regime Admits Sanctions Relief Will Not Aid Citizens, Funds Likely to Fuel Terrorism

In a rare admission, Iran’s government revealed that ordinary citizens will not experience immediate benefits from any prospective sanctions relief achieved through ongoing negotiations with the United States. Fatemeh Mahajeraneh, spokesperson for the regime, told reporters in Tehran that even if a deal is reached, it would take months or years before the Iranian public feels the effects. The announcement sheds light on the persistent concern voiced by analysts, Western officials, and many Iranians—that the primary beneficiaries of fresh funds will be Iran’s military apparatus and regional terror proxies, rather than the nation’s struggling population.

For years, Iran has been engaged in high-stakes negotiations with Western powers over its nuclear program and the associated sanctions regime. Economic sanctions, initially imposed to curb Iran’s nuclear ambitions and deter extensive support for terror networks, have isolated the nation from global markets and inflicted harsh socioeconomic conditions on average Iranians. While the government often blames foreign pressure for these woes, mounting evidence and regime admissions point to mismanagement and a policy of prioritizing military and proxy expenditures over domestic welfare.

Sanctions Relief and Regime Priorities

International observers and Israeli officials have repeatedly highlighted that, in previous episodes of sanctions relief—most notably after the 2015 Joint Comprehensive Plan of Action—significant sums were channeled toward the Islamic Revolutionary Guard Corps (IRGC) and Tehran’s foreign interventions. The IRGC and its elite Quds Force, designated by the United States and other governments as a terrorist organization, oversee operations that arm and finance groups such as Hamas in Gaza, Hezbollah in Lebanon, militias in Syria and Iraq, and the Houthis in Yemen. These entities form the so-called “Axis of Resistance,” posing a direct threat to Israel and contributing to regional instability.

The realignment of funds toward Iran’s aggressive foreign policy follows a consistent pattern. Public infrastructure, welfare, and basic services stagnate as the leadership invests in ballistic missile development, proxy warfare, and the security of a narrow political elite. The Iranian budget, as independently assessed by international monetary and security experts, overwhelmingly favors defense and covert operations over civilian needs.

Israel, Regional Security, and the Iranian Threat

Israel regards Iran’s pursuit of regional dominance and its drive for nuclear capability as a continual threat to its security. The October 7, 2023, massacre orchestrated by Hamas—aided and abetted by Iranian training and funding—served as a stark reminder of the threat posed by Tehran’s proxies. That atrocity, the deadliest antisemitic massacre since the Holocaust, exemplified the risks of enabling Iran’s network and underscored Israel’s insistence on robust safeguards and verifiable restrictions in any international agreement with Iran.

Prime Minister Benjamin Netanyahu and IDF Chief of Staff Lt. Gen. Eyal Zamir have consistently emphasized that measures directed at curbing Iran’s activities cannot rely on goodwill or unenforced promises. Instead, Israel insists that only rigorous inspections, snap-back sanctions, and persistent international scrutiny will compel the regime to alter its doctrine of exporting violence. Israel’s military and intelligence officials continue to spotlight seizures and interdictions of Iranian weapon shipments as concrete proof of ongoing bad-faith behavior.

Nuclear Program: Diplomatic Overtures Versus Reality

While Iranian officials claim that negotiation and potential sanctions relief will benefit the Iranian public, history tells a different story. The regime has repeatedly offered partial transparency to International Atomic Energy Agency (IAEA) inspectors while failing to halt its covert nuclear advancements. Multiple reports document continued uranium enrichment, hidden advanced centrifuge facilities, and ballistic weapons development, fueling persistent skepticism about Tehran’s motives and intentions.

The United States and its allies maintain that any sanctions relief must be matched by clear, verifiable steps from Iran to halt its nuclear ambitions and discontinue support for regional violence. However, Fatemeh Mahajeraneh’s statement calls into question the likelihood of any near-term shift in regime behavior.

Public Disillusionment and Corruption

Iran’s population, battered by inflation, unemployment, and daily hardships, has grown increasingly cynical about promises of economic recovery resulting from Western engagement. Multiple waves of protest, from the Green Movement in 2009 to more recent anti-regime demonstrations, have denounced corruption and the diversion of resources to foreign wars. Slogans publicly rejecting the regime’s allocation of billions to proxies in Gaza and Lebanon have become rallying cries for reform.

Foreign observers remain deeply concerned about well-documented corruption among Iran’s leadership. Investigations by international media and whistleblowers show regime elites amassing wealth, acquiring luxury properties overseas, and funnelling state assets into opaque religious foundations. These structural problems have only compounded the difficulty of ensuring that any sanctions relief reaches the ordinary citizen instead of reinforcing authoritarian entrenchment.

Outlook: No Immediate Relief, Persistent Risks

Policy experts, including those in Washington and Jerusalem, argue that the Iranian regime’s admission vindicates warnings that sanctions relief alone is insufficient and often counterproductive unless tightly regulated. Absent genuine reforms, money entering Iran under a diplomatic settlement will likely be redirected to strengthen the IRGC and escalate aggressive activities, further threatening Israeli and regional security.

The global community, led by the United States and European partners, faces a critical juncture: whether to trust Iranian promises or to insist on detailed, transparent mechanisms for supervision. Israel maintains that it stands ready to act unilaterally if necessary to defend its population and ensure that terror organizations do not benefit from diplomatic miscalculations.

Fatemeh Mahajeraneh’s candid overview of the regime’s agenda has drawn back the curtain on the regime’s priorities—and provided the world a timely warning: without structural change and meaningful accountability, the people of Iran and the broader Middle East will continue paying the price for Tehran’s ambitions.

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