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WHEN the "Arab Spring" unexpectedly broke out late last year, Natan Sharansky waxed optimistic. Writing in the Washington Post in March, the former Soviet refusenik who ranks as Israel's best known pro-democracy activist argued that the grassroots revolts that unseated Tunisian strongman Zine el-Abedine Ben Ali and Egyptian dictator Hosni Mubarak marked the start of a democratic tsunami that could soon engulf the region. Regional conditions, he counseled, were ripe for just this sort of radical surgery.

These days, however, Israelis who share this hopeful outlook are exceedingly hard to find. A recent visit found policymakers and academics of all political stripes deeply apprehensive of the tectonic shifts that have taken place in their region this year. They have good reason to be. Israel's security environment, never favorable, has taken a dramatic turn for the worse.

The foiled Iranian Revolutionary Guard Corps (IRGC) plot to assassinate the Saudi ambassador to the United States, which was made public by the White House on Oct. 11, amounts to a dramatic escalation of the West's confrontation with Iran. In the wake of the disclosure, the Obama administration has talked tough, pledging new diplomatic pressure against Iran and emphasizing that "all options are on the table" as it contemplates its response.

But what can actually be done about Iran's clerical army and the radical regime that enables it? The most ready answer lies in the prominent role the IRGC now plays in the Iranian economy, which can be exploited by Washington and its allies in the service of a new economic offensive against the Islamic republic.