The threat of Iran’s European networks

The challenge is bigger than preventing terrorist attacks. Security services must identify when financial, charitable, commercial, or criminal networks are being converted into operational tools

The threat of Iran’s European networks

An Iranian threat to Europe no longer looks like the terrorism of an earlier era. It may look instead like two men conducting surveillance of an embassy, young local criminals lurking near a military base, a gang hired to attack a Jewish target, a charity moving money, an art dealer facilitating sanctions evasion, or a commercial company procuring dual-use technology.

Recent events in Britain illustrate the problem. On 9 October, two men pleaded not guilty at the Old Bailey to accusations that they had carried out hostile surveillance on behalf of Iranian intelligence services. Their alleged targets included the Israeli Embassy and Consulate in London, Bevis Marks Synagogue and other Israeli or Jewish interests. The allegations concern reconnaissance conducted in July and August 2025 and remain to be tested at trial.

Even more striking is the ongoing investigation into activity around RAF Fairford, the British airbase used by the United States. British authorities are investigating a suspected terrorist plot after masked men and three vans were discovered near the base on 27 September. US officials later said intelligence indicated a possible planned Iranian drone attack, and the United States subsequently removed B-1 bombers from Fairford. Iran denies involvement, and the investigation remains open.

These incidents are important not simply because Iran may have been behind them. They point to a much larger transformation in the way Iran projects coercive power abroad. Iran-linked activity can no longer be understood principally as a collection of terrorist plots conducted by Iranian intelligence officers. What has emerged instead is an adaptive transnational architecture connecting state agencies, proxies, organised crime, financiers, charities, educational institutions, commercial fronts, and local intermediaries.

Changed methods

Iran has long conducted hostile operations abroad. But the methods have changed. The 2018 plot to bomb a gathering of Iranian opposition figures outside Paris represented an older model. Assadollah Assadi, then an accredited Iranian diplomat based in Vienna, was subsequently convicted for his role in the plot. His prosecution demonstrated the costs of using officials carrying diplomatic cover for terrorist activity.

Since then, Iran has increasingly moved towards outsourcing, as criminals and local intermediaries are easier to recruit, harder to connect conclusively to the Iranian state, and ultimately expendable. Sweden offers perhaps the clearest example. The US Treasury concluded that the Foxtrot criminal network carried out an attack against the Israeli Embassy in Stockholm in January 2024 on Iran's behalf.

The British government has now gone further in publicly attributing this model to Iran. In July, it sanctioned the Islamic Movement of the Companions of the Right, also known as IMCR or HAYI, after the group claimed seven attacks against Jewish, Israeli, and Persian-language media targets in Britain. The UK government assesses that members of the Islamic Republican Guards Corps (IRGC) Quds Force were behind the organisation and “almost certainly” directed its attacks across Europe.

This is what makes the Fairford investigation particularly significant. If an Iranian connection is later established, it shows a state's ability to turn relatively unsophisticated local actors into instruments capable of forcing a major military power to alter its deployment of strategic assets. Iran can also use such hired local actors to send a low-level threat message to the US.

A commercial procurement channel can serve as a proxy militia abroad while simultaneously building capabilities relevant to operations inside Europe

Broader ecosystem

But focusing only on attempted violence misses much of the threat. The same broader ecosystem can recruit through religious or educational platforms, raise funds through charities, spread narratives through media organisations, move money through commercial companies, and procure equipment through legitimate trading networks.

Iran's Al-Mustafa International University illustrates how apparently civilian institutions can occupy the recruitment end of this chain. The US Treasury has accused the university, which operates internationally, of being used by the IRGC Quds Force to recruit individuals for intelligence operations and foreign militias. Germany's closure of the Islamic Centre Hamburg in 2024 demonstrated another form of institutional infrastructure: the German government described it as an important Iranian-linked institution that also supported Hezbollah.

Money moves through similarly varied channels. Italian authorities arrested nine people in December 2025 suspected of diverting around €7mn through charities to Hamas-linked entities. In Britain, the sanctions-evasion network surrounding Hezbollah financier Nazem Ahmad used the international art market. US authorities have meanwhile targeted UK-registered cryptocurrency exchanges accused of processing vast volumes of transactions connected to IRGC-linked wallets. Belgium has figured in Hezbollah-linked commercial finance networks, Switzerland in Iranian oil-trading and front-company structures, and Spain in investigations into the procurement of drone components for Hezbollah.

Seen individually, these can appear to be unrelated cases involving charity regulation, sanctions, financial crime or export controls. Seen together, they reveal the infrastructure that makes coercive activity possible.

A network capable of moving people, money, technology and information can potentially be repurposed quickly. A facilitator moving sanctioned money today may provide logistical support tomorrow. A criminal recruited for surveillance can later be asked to intimidate or attack. A commercial procurement channel can serve a proxy militia abroad while simultaneously building capabilities relevant to operations inside Europe.

Counterterrorism agencies need to look beyond formal organisational membership towards the brokers and criminals who can be mobilised temporarily

Europe more exposed

Two developments have made this architecture more consequential for Europe. The first is Iran's deepening involvement in Russia's war against Ukraine. Iranian drones, missiles, procurement systems, and sanctions-evasion networks ceased to be a distant Middle Eastern problem once they began contributing directly to a war on Europe's borders. Defence ministries, customs agencies, financial regulators, and export-control authorities consequently became stakeholders in a file previously managed largely through foreign policy and counterterrorism institutions.

The second is the war with Iran that began in February 2026. Europe is no longer merely a logistical rear area. Israeli and Jewish institutions, Iranian dissidents, diplomatic facilities, and military infrastructure connected with US operations can all become targets for retaliation or coercive signalling.

That makes the distinction between terrorism and the infrastructure supporting it increasingly artificial. The European Union's February 2026 designation of the IRGC as a terrorist organisation was therefore important, but insufficient. It increases the scope for asset freezes, compliance scrutiny, and cooperation between authorities. Yet the most resilient parts of the Iranian ecosystem are precisely those designed to sit outside clearly labelled IRGC structures: front companies, cryptocurrencies, professional facilitators, community organisations, and criminal intermediaries.

The challenge is consequently larger than preventing spectacular terrorist attacks. Security services must identify when financial, charitable, commercial, or criminal networks are being converted into operational tools. Financial investigators need to understand their relationship to national security. Export-control authorities need to see procurement networks as potential components of a coercive architecture. Counterterrorism agencies need to look beyond formal organisational membership towards the brokers and criminals who can be mobilised temporarily.

Iran's evolving model is powerful precisely because the boundaries are blurred. The individual conducting surveillance may not be an IRGC officer. The company moving money may not formally belong to Hezbollah. The criminal setting a fire may have little ideological commitment to Iran. Each can nevertheless perform a function within the same system.

The question European—and allied—governments must therefore ask is no longer simply: Who belongs to an Iranian terrorist organisation? It is: How quickly can Iran turn the networks already operating inside European societies (and beyond) into instruments of coercion?

The incidents now being investigated in Britain suggest that the answer matters increasingly urgently.

font change