By Fariba Raad | 2025-03-17

Isolated on the world stage and with its economy on the brink of collapse, the Iranian regime has sought to strengthen its ties with fellow pariah state Venezuela -- which is facing substantial problems of its own.

In Venezuela, as in Iran, essential services such as electricity, gas, water and healthcare are facing critical shortages, analysts told Pishtaz.

But the Iran-Venezuela alliance is unlikely to do much for the peoples of either nation, they said.

With domestic problems mounting and regional allies lacking, the Iranian regime has had to look further afield for friends.

Tehran and Caracas are united in their defiance of international sanctions, with the Islamic Republic shipping fuel and refining components to Venezuela, receiving heavy crude oil and gold in return.

Members of the Iranian regime's leadership have acquired real estate in Venezuela, according to Chilean newspaper La Tercera.

And in November, Caracas offered asylum to Tehran's political leadership in case of a coup in the Islamic Republic, DW reported.

Through Venezuela, Tehran seeks to maintain its global terrorist infrastructure despite setbacks in the Middle East, analysts say.

Meanwhile, Caracas's willingness to host the Iranian regime's proxy networks reflects its desperation to maintain power -- even if it means becoming a safe haven for international terrorism.

Hizbullah's staging ground

"Iran lacks an allied government in the Middle East and relies on non-state actors such as Hizbullah in Lebanon" and other regional proxies, Sara Bazoobandi of the Institute for Security Policy at the University of Kiel told DW.

The Iranian regime's main proxy, Hizbullah, has used Venezuela as a staging ground for illicit operations and international terrorism, using established networks in Venezuela for criminal activities and drug trafficking operations.

Hizbullah has made and laundered money through various illicit activities, including drug trafficking, which once brought in an estimated annual $1 billion, the Foundation for Defense of Democracies (FDD) said in November 2023.

"While Israel has degraded Hizbullah's power, it is still a lethal threat. Iran's illicit networks in Latin America remain in place," United Against Nuclear Iran policy director Jason Brodsky told Pishtaz.

"They have been developed over decades. Their operatives travel under aliases and exploit the permissive environment that Venezuela offers for Islamic Revolutionary Guard Corps Quds Force (IRGC-QF) and Hizbullah operations."

The group's criminal operations span the globe, with a major hub in South America where the borders of Brazil, Argentina and Paraguay meet.

Proceeds fuel the operations of Hizbullah, which -- until recent crippling setbacks -- used to receive hundreds of millions annually from the Iranian regime.

Hizbullah uses these combined funds to maintain its global terrorist infrastructure and criminal networks, according to FDD.