Iran Resumes Ballistic Missile Assembly Amid Economic Crisis

Iran has resumed assembling ballistic missiles in underground facilities using components manufactured before the war. The production is taking place on a more limited scale than before, and includes both liquid-fueled and solid-fueled missiles.

The International Atomic Energy Agency (IAEA) stated that it had identified construction activity at Pickaxe Mountain, but did not determine what is taking place inside the underground complex. CSIS published satellite-imagery analysis indicating that construction and fortification activity continues at the site, with a new security wall completed, tunnel entrances modified, access roads upgraded, and sustained logistical activity observed.

The past month also posed a test of Iran's commitment to Hezbollah. Despite earlier reports that Hezbollah had pressured Iran to respond, no direct Iranian response explicitly linked to the destruction of Hezbollah's underground tunnel and command infrastructure on the Ali al-Taher Ridge was documented.

Iran has faced an unprecedented economic crisis and monetary squeeze over the past month, with an almost complete paralysis of oil exports, soaring inflation, and a doubling of domestic fuel prices threatening internal stability. The country's currency, the rial, reached a historic low in late August, reaching roughly two million rials per US dollar.