Former Mossad economic chief: Stop Iran by cutting this one lifeline

Operation Rising Lion was defined by the Prime Minister as an operation to remove an existential threat to the State of Israel. In my opinion, the Prime Minister is mistaken in portraying the Iranian threat as one that concerns only Israel. Iran’s ambitions in the nuclear realm, its sponsorship of terrorism, and its export of radical Islam constitute a strategic danger not just to Israel but to the stability of the international system at large.

Iran poses a threat to a wide array of countries. Conservative Sunni states, Western democracies where Iranian subversive networks have quietly taken root, and even Latin America and Africa - all face the consequences of Iranian aggression. Whether through the distribution of narcotics aimed at destabilizing Western societies, or through terrorism and ideological penetration, Iran is actively working to undermine the global order. Yet Israel finds itself virtually alone in this struggle. The silence from the rest of the world is deafening.

Historically, the West has demonstrated a combination of naivety and reluctance - if not outright cowardice - in confronting radical Islamist threats. The United States, too, appears hesitant to join this campaign, either due to isolationist tendencies or a fundamental misreading of Iran’s strategic threat to global stability. Yet joining this campaign need not mean launching airstrikes or deploying ground troops. Assistance can take the form of financial warfare, shutting down the funding mechanisms that sustain Iran’s destructive activities. That power lies firmly in the hands of Western nations. All that’s required is the will to enforce their own laws and regulations.

Western nations and Gulf states possess a strategic economic weapon that can significantly constrain the Iranian regime’s capacity to operate. For those seeking to bring Iran to the negotiating table, or even dreaming of regime change, this tool is decisive.

Iran’s economy, particularly its military-industrial capabilities, is sustained by oil revenues. Under former President Trump’s “maximum pressure” campaign, harsh sanctions were imposed on Iranian oil exports. This sector alone accounts for roughly half of Iran’s export revenues, approximately $53 billion annually. Those funds help finance the Iranian state budget, including substantial allocations to the Islamic Revolutionary Guard Corps (IRGC) and the Quds Force.

These entities receive direct oil allocations from the state, which they are responsible for selling. The proceeds fund missile development, nuclear enrichment, and the operation of proxy forces across the region. To export this oil, the IRGC and its affiliates manage a parallel logistics and finance system - from loading tankers to transferring payments via a web of front companies and illicit laundering routes, primarily targeting buyers in China.

Crippling this security-driven oil trade would deliver a double blow: escalating economic pressure on Iran and simultaneously cutting off the financial lifeline to its military build-up.

A critical player in this covert system is the Iranian company Sepher Energy Jahan. In recent days, a massive leak has revealed thousands of internal documents and emails, detailing its activities related to oil exports. These include loading manifests, contracts with Chinese customers, and invoices from shell companies used to disguise transactions. The volume and specificity of the leaked material confirm what many suspected: despite U.S. sanctions, Iranian oil exports continue, and they continue to fund large-scale terrorism.

This is the moment for nations that have remained on the sidelines to act. Western powers and Gulf states must move decisively - by freezing bank accounts, shutting down shell companies, and closing the financial arteries that fuel Iran’s regional aggression.

Such action won’t just support Israel - it could reshape the strategic landscape and remove a growing threat to the international order.

Dr. Udi Levy served as head of the Economic Warfare Division (“Harpoon”) at the Mossad and is currently a senior fellow at the Jerusalem Institute for Security and Strategy (JISS).