Iran Update, January 23, 2025
Iran is continuing to try to expand economic and transportation cooperation with Azerbaijan. Iranian Roads and Urban Development Minister Farzaneh Sadegh signed a memorandum of understanding covering transportation, energy, and finance cooperation with Azerbaijani Deputy Prime Minister Shahin Mustafayev in Tehran on January 22.[72] Sadegh stated that bilateral trade between Iran and Azerbaijan reached 580 million US dollars in 2024, a 20 percent increase from 2023.[73] Mustafayev stated that the Aghband Bridge, which is part of the International North-South Transit Corridor, will open by the end of 2025. This bridge is meant to increase trade through the East-West Aras corridor along Iran’s northwestern border.[74] Islamic Revolutionary Guards Corps (IRGC)-affiliated media reported that the Khatam ol Anbia Construction Headquarters will be responsible for the expansion of the Aras corridor over the next two years.[75] The Khatam ol Anbia Construction Headquarters is an IRGC-controlled civil engineering and construction firm that dominates broad swaths of the Iranian economy. The Iranian and Azerbaijani delegations also discussed energy and water cooperation as well as efforts to integrate the Iranian and Azerbaijani electricity grids.[76]
https://www.understandingwar.org/backgrounder/iran-update-january-23-2025
Iran Update, January 24, 2025
The Islamic Revolutionary Guards Corps (IRGC) Navy continued the “Great Prophet 19” military exercise in the Persian Gulf near the shores of Bushehr and Khuzestan Provinces on January 24.[56] IRGC Navy Commander Rear Admiral Alireza Tangsiri said that the exercise demonstrates “peace and security” for regional neighbors while warning “transregional forces” against destabilizing actions. The exercise reportedly features high-speed missile boats, deployable naval mines, and precision-strike drones. The United Kingdom Maritime Trade Operations (UKMTO) reported Very High Frequency (VHF) radio challenges to vessels in the northern Persian Gulf, likely linked to the exercise, and warned mariners near Iranian waters about possible course change demands.[57] The IRGC Navy likely aims to showcase its ability to disrupt maritime traffic near the Strait of Hormuz and the Persian Gulf, an approach Iran has previously used in response to international sanctions.[58]
Iran and Oman signed an economic Memorandum of Understanding (MOU) during the 21st Joint Cooperation Meeting in Muscat which includes preferential trade, tariff reductions, and customs cooperation.[59] Iranian Industry Minister Mohammad Atabak emphasized investment support, shipping routes, and expanded flights as key priorities. Iranian officials visited Armenia, Azerbaijan, Tajikistan, Russia, and Oman in January 2025 primarily to strengthen economic ties as part of Iran’s broader neighborhood policy.[60]
https://www.understandingwar.org/backgrounder/iran-update-january-24-2025