The Implausible Regime Change in Iran and How the War Affects the World
The dead Ali Khamenei hands over the Iranian flag to a mirror image of his son, Mojtaba Khamenei. From the web site https://english.khamenei.ir/
By Jan Lundius
STOCKHOLM, Sweden, Mar 12 2026 (IPS)
The US/Israeli war on Iran might be like messing with a hornets’ nest, spreading fear and chaos all around. The Israeli government claimed that the war was a “preventive” measure to address an immediate threat of Iran constructing a nuclear bomb. However, this war has obviously been meticulously planned over a long period of time and it now seemed to be the right time to put this plan into action. The Iranian air defences had been weakened through earlier attacks, while recent Israeli strikes decapitated Hezbollah’s Lebanese leadership, Iran’s allies north of Israel. With Gaza destroyed and Syria’s unreliable Assad gone, Netanyahu had succeeded in securing his party’s coalition with the far-right and could continue to count upon the support of the Trump Administration, providing Israel with a free hand vis-à-vis the Palestinians and turning a blind eye to the massacre of civilians. The U.S. is continuously supporting Isreal with missile-defence systems, coordination, cooperation, and intelligence sharing.
It appears as if the U.S./Israeli forces now intend to bomb everything in Iran – from its highest leaders, down to police stations and thus hope that Iran will exhaust its defence capacities. The aggressors furthermore claim they intend to achieve an Iranian regime change. However, even if Iran’s ninety-two million people now are trapped between a bloody war and a repressive regime it is highly unlikely that a tolerant government will emerge from a battered rump version of the Islamic Republic of Iran. It is more probable that such a state will be governed by leaders even more determined to cling to their power after gaining more confidence after overcoming a terrible crisis. U.S. actions seem to be more improvised than Israel’s and it seems that they have not learned from the Afghanistan failure, i.e. the difficulties in achieving and maintaining a regime change through military means.
The U.S. government rejoiced from the killing of Ali Khamenei – a mid-ranking cleric who did not meet the constitutional requirements of being a marja, i.e. a cleric enabled to make legal decisions for followers and clerics below him in rank. Instead, Khamenei was during his 36 years and six months in power forced to rely on his close ties with the powerful Islamic Revolutionary Guard Corps (IRGC). Now, in spite of the fact that the Iranian revolution’s father, Ayatollah Ruhollah Khomeini, had declared that “hereditary succession is sinister, evil, and invalid,” Khamenei’s son has been elected as Supreme Leader. So far Mojtaba Khamenei has acted in the shadow of his father and few Iranians have heard him speak. He has not made any public appearances, never given a sermon, or made any declarations; just working in close relation with the leaders of IRGC.
Whereas the Iranian Army acts as protector of the nation’s sovereignty, the IRGC “safeguards” the Islamic Republic. With more than 125,000 members it serves as Iran’s coast guard, operates a media outlet called Sepah News, and controls the nuclear program. From its origins as an ideological militia, the IRGC now controls nearly every aspect of Iranian politics, economy (including energy and food industries), as well as the nation’s social life. It counts upon a paramilitary volunteer militia with 90,000 active personnel. One of IRGC’s branches is the Qods Force, which specialises in unconventional warfare and military intelligence operations.
The presence, terror and fear created by IRGC have made it difficult for any internal opposition to get organised. In Iran there is nothing akin to the African National Congress with leaders like Nelson Mandela. If a leader would arise from the mess created by the U.S. and Israel it would more likely be a man like Alia Ardashir Larijani, a former commander of the IRGC who holds a B.Sc. in computer science and mathematics, as well as a PhD in Western philosophy.
Larijani has served as deputy minister in various cabinets, been head of the Republic’s broadcasting service, and Secretary of the Supreme National Security Council. Larijani also served as Iran’s top nuclear envoy. However, in late March 2025 he stated that if Iran would be attacked by the United States and Israel, the nation would have no other choice than to develop nuclear weapons. Larijani is accused of having played a key role in the deadly crackdown against opposition protests that gripped the country in January this year. Since the end of December 2025, he is regarded to be the de facto leader of Iran and after originally opposing the election of Mojtaba Khamenei, Larijani has now rallied his supporters behind the newly elected Supreme Leader.
Apart from the fear of an internal collapse of the Islamic Republic of Iran, there are concerns about the economic effects of the current war. Beyond the physical damage, Epic Fury has been quite costly for the Trump Administration that so far has deployed nearly half of the United States’ air power and roughly a third of its naval assets. So far, the Pentagon has not released an official estimate of the cost of the war, but it is currently believed to be USD 2 billion per day. Meanwhile, stocks have plunged all over the world and the price of crude oil spiked from USD 65 per barrel to USD 120 after the Strait of Hormuz, through which a fifth of the world’s oil and liquified gas passes, had been effectively closed.
89 percent of Saudi Arabia’s oil shipments used to pass through the Strait, while Kuwait and Qatar shipped 100 percent, Iraq 97 percent and the United Arab Emirates 66 percent. Qatar has so far been worst hit, particularly since it took the place of Russia for liquified gas exports to Europe. Kuwait has now been forced to suspended its production and export of crude oil and liquefied natural gas (of which it is second to the U.S. as the world’s largest provider).
Winners of this situation are large net energy exporters outside the Gulf whose ability to sell abroad remains unaffected, such as Norway, Russia and Canada, and to a lesser degree Nigeria and Angola. Not the least the U.S. is a winner thanks to its expanding fracking industry. At the other end of the spectrum sit economies where energy imports account for a large share of their GDP. This group includes countries such as South Korea, Taiwan, Japan, India and China, as well as most European economies including France, Germany and the UK.
It has even been speculated that the war on Iran is a means of USA to hurt China’s economy. In 2025, China bought more than 80 percent of Iran’s shipped oil, around 12 percent of China’s crude oil imports, while approximately 3 percent came from Venezuela (now subjugated by the U.S.).
In 2021, China and Iran signed a 25-year strategic partnership, meaning that China promised to invest USD 400 billion in exchange for keeping Iranian oil flowing. China does not view its “alliances” in the same way the West does, meaning that its government does not sign mutual defence treaties and will not come rushing to its allies’ aid. However, an unpredictable and dysfunctional actor as the U.S. has become under the Trump administration is a great source of unease for Beijing. Worries worsened by the fact that China’s annual economic growth target has reached its lowest level since 1991. Even as Beijing continues its rapid development of high-tech and renewables industries the country is currently battling with low consumption levels, a prolonged property crisis, and a huge local debt.
A big economy like China’s, as well as other wealthy nations, might find means to mitigate rising oil prices, but it’s much worse for smaller, poorer nations. Disruptions to energy supply as a result of a prolonged conflict will have far greater ramifications economically in the Global South than in the West. As an example, a country like Bangladesh, which is particularly dependent on Middle Eastern oil, not least for its garment industry, has already imposed daily limits on fuel sales after panic buying and stockpiling raised concerns about supply. Furthermore, approximately 13 million Bangladeshi expatriates are currently supporting the country’s economic stability through their remittances, of them 8 million live and work within the Middle East.
The same is true of Pakistan, with over 11 million Pakistanis living and working abroad, mainly in the Gulf states. In January 2025 alone, the country received USD 3 billion in remittances, reflecting a 25 percent year-on-year surge. Furthermore, Pakistan shares a 900-kilometre border with Iran and a collapse of Iran into civil war is a constant worry for Pakistan, which also maintains a military relationship with Saudi Arabia with an estimated 1,500 to 2,000 Pakistani troops stationed in the kingdom. If the situation worsens, as Saudi infrastructure is hit any further, it is only a matter of time that Saudi Arabia will ask Pakistan to contribute towards its defence. Pakistan’s border areas with Iran and its huge Shia population (generally well-disposed towards their fellow believers on the other side of the frontier) are already highly volatile and if internal strife within Iran spills over the border, the fallout for Pakistan would be severe. Pakistan is furthermore recently engaged in a war with Afghanistan. On 6 March, Pakistan carried out air strikes in more than twenty locations across Afghanistan, while the Taliban targeted dozens of Pakistani border posts.
Other neighbouring nations to Iran are equally nervous. In Turkmenistan prices have almost doubled compared with pre-war levels. With an average salary of around USD 714 a large portion of the population is hard hit, since Turkmenistan is importing a considerable amount of industrial goods from Iran – like steel, construction materials, and petrochemicals, as well as food and household items that constitute a critical lifeline for many of its residents.
Turkey is also alarmed by the present situation and worries what will happen if Iran collapses into warring factions. If the U.S./Israel confrontation with Iran deepens, particularly in ways that involve regime change with a spillover effect on Turkey, or security implications as a result of expanded U.S./Israeli cooperation with hostile Kurdish militants, this war could quickly evolve into another fault line in U.S.-Turkish relations.
To sum up – the U.S./Israel attack on Iran is very unlikely to result in a regime change, but might instead result in a chaotic and bloody collapse of the entire country. The war is a high-risk game that might have dangerous effects not only on Iran and its immediate neighbours, but the entire world as well.
IPS UN Bureau