American Foreign Policy Council

Iran Democracy Monitor No. 253

July 20, 2026 Lucas Tessarollo, Calla O’Neil
Related Categories: Economic Sanctions; Islamic Extremism; SPACE; Iran; Israel; United States

IRAN TARGETS THE BAHA'I ANEW
Iran’s Baha'i religious minority, a persistent target of repression on the part of the Iranian regime, has found itself a renewed target in the wake of this winter's nationwide protests. Dozens of Baha’i have been arrested so far this year, facing accusations of espionage, "propaganda against the regime," and committing actions "contrary to Islamic law." Those arrested have been subject to electro-shock torture, mock hangings, and forced confessions to crimes punishable by death. Persecution of Baha'is has also been highly publicized within the country, with regime authorities actively spreading disinformation about the community and encouraging Iranians to report Baha'i for supposed infractions of civil law. These measures, observers say, are intended to foster a climate of fear among the Baha'i and other minorities. (Associated Press, July 13, 2026)

ISRAEL TARGETS IRGC CRYPTO
Israel has issued sanctions against 37 cryptocurrency wallets associated with Iran's Islamic Revolutionary Guard Corps (IRGC). Totaling more than $8 million, the funds were allegedly used to fund Iranian-backed terrorist organizations. The move is a part of a wider effort to prevent Iranian "shadow banking" – networks that the regime uses to evade traditional sanctions. (Jerusalem Post, July 1, 2026)

TEHRAN COURTS THE TALIBAN
Iran and Afghanistan's ruling Taliban movement are inching toward improved relations and broader economic ties. At the recent opening of the Fifth International Exhibition in Kabul, Iran's ambassador to Afghanistan, Alireza Bikdeli, praised the relationship between the two governments and promoted economic engagement as the foundation for future bilateral ties. He noted Kabul's growing integration into the region despite Western ostracism of the ruling Islamist movement, and encouraged Iranian investors to take advantage of the new opportunities now available in the country.

Bikdeli's comments come despite persistent tensions between the two governments over issues such as water rights relating to the Helmand River. Amid the ongoing conflict with the United States, Tehran now appears intent on shoring up its eastern flank via expanding economic engagement with its neighbor. (Afghanistan International, July 1, 2026)

IRAN'S GROWING SPACE AMBITIONS
In spite of its current hostilities with Washington, Tehran is looking to the stars. The centerpiece of Iran's space program is the Martyr Soleimani Satellite Constellation – a constellation of approximately 24 low Earth orbit satellites, which ranks as Iran's first. First unveiled in January 2023, the project is being developed through a consortium of public and private entities, and is ostensibly intended to provide connectivity to remote areas of the country outside the reach of traditional communications networks. The initiative marks a departure from Iran's earlier space activities, which centered on individual satellite missions. (PressTV, June 24, 2026)

[EDITORS' NOTE: Regime officials are promoting the constellation as a vehicle for developing domestic space capabilities and a resilient communications infrastructure. In practice, however, the project serves Iran's broader goal of strategic autonomy: these satellites are being developed domestically alongside ground infrastructure and user terminals to build a fully self-sufficient satellite communications ecosystem that is insulated from sanctions and external political pressure. And although officials have portrayed the constellation as a civilian undertaking, the system also carries clear dual-use potential as a military asset.]

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