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Iran's Revolutionary Guard to establish secret drone cells in Iraq, escalating regional tensions

Executive summary: Iran's Revolutionary Guard is reportedly building clandestine drone cells in Iraq to extend its influence and support proxy activities. The initiative heightens geopolitical risks in the Gulf, could destabilize Iraq, and may trigger broader security responses from the US and regional partners, affecting global market confidence.

Who is involved: Iranian Revolutionary Guard (IRGC), Iraqi authorities, United States, regional allies

Likely next: Escalating diplomatic protests, potential sanctions, and increased monitoring of Iranian drone activity in the region

The report reveals that Iran's leadership is expanding its military footprint through proxy drone infrastructure in Iraq, leveraging the "Islamic Resistance" narrative. This move signals a deeper strategic shift toward asymmetric capabilities that could destabilize regional security and draw broader geopolitical reactions.

What's next — scenarios

Regional Escalation & Proxy Proliferation (50%)

Increased volatility in energy markets and higher maritime insurance premiums in the Persian Gulf.

Containment & Strategic De-escalation (30%)

Stability in regional logistics corridors and predictable energy supply chains.

Direct Confrontation / High-Intensity Conflict (20%)

Severe disruption to global oil supply and immediate shift to defensive defense spending for regional powers.

What to watch

Timeline

Analysis — what this means

Likely next events

Sectors affected

Regulatory implications

Historical parallels

Key entities

Sources

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