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

Iran's proxy network and gray zone strategy have significantly eroded following a recent war, shattering the regime's aura of invulnerability. As Iran's deterrent credibility weakens, host governments are increasing political pressure on Iranian-backed groups, leading to a decline in their morale. While the regime maintains a sophisticated sanctions-evasion infrastructure tied to oil revenues, its ability to support proxies is diminishing due to internal crises, mass protests, and international pressure. These proxies, such as Hezbollah, now face mounting structural constraints and more difficult arms transfers, compounded by aggressive regional competition.