Tensions Between Iran and Israel

How did Iran and Israel become arch-rivals?

1. 1979: A Turning Point

   1. Prior to 1979, during the reign of the Pahlavi dynasty in Iran, Iran and Israel maintained cordial bilateral relations, with Iran being one of the first Muslim countries to acknowledge the establishment of the state of Israel.

   2. However, ties between the 2 nations deteriorated significantly after the Islamic Revolution in Iran in 1979.

   3. The removal of Shah Mohammad Reza Pahlavi and the subsequent rise of Ayatollah Ruhollah Khomeini as supreme leader of the Islamic Republic of Iran gave rise to a policy of confronting powerful world powers.

   4. Limited cooperation between Israel and Iran continued until the 1980s, but later turned into hostile rivalry as Iran supported and funded proxy militias in various regional conflicts.

   5. This rivalry escalated into a shadow war between the 2 countries.

2. Iran's Nuclear Program: A Primary Target

   1. Israel is primarily focused on targeting Iran's nuclear program, which Iran says is entirely for peaceful purposes.

   2. Tehran believes Israel and the United States introduced the Stuxnet computer virus in the early 2000s to disrupt the centrifuges enriching uranium for Iran's nuclear program.

   3. A series of sabotage attacks continued in the 2020s as Israel tried to damage Iranian nuclear facilities.

3. War by Proxy

   1. Iran has long supported armed groups across the region that target both Israel and the United States.

   2. The most notable group is Hezbollah in Lebanon, which was formed in the 1980s to counter the Israeli occupation of southern Lebanon.

   3. As the Gaza War began in October 2023, Hezbollah began launching rocket attacks into northern Israel.

What is the 'Axis of Resistance'

• The 'Axis of Resistance' includes not only Hamas, the Palestinian group that initiated the conflict, but also organizations such as Hezbollah in Lebanon, the Houthi movement in Yemen, and Shi'ite armed groups in Iraq and Syria.

How does the Israel-Hamas war affect India

1. Impact on Crude Oil Imports:

   1. As a net importer of crude oil, a prolonged conflict could lead to increased import costs for India.

2. Economic Repercussions:

   1. Prolonged conflict may result in higher fuel prices, inflationary pressures, a higher fiscal deficit, currency depreciation, and potentially reduced economic growth in India.

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