Iran will use ballistic missiles and different types of missiles with greater destructive power, greater precision - defense ministry spokesperson

Iran’s defense ministry has announced plans to deploy ballistic missiles with enhanced destructive power and precision, signaling a continued prioritization of its missile program amid regional tensions. The Islamic Republic has developed a diverse arsenal, including liquid- and solid-fuel systems capable of reaching targets across the Middle East, with ranges exceeding 2,000 kilometers. Recent advancements, such as the Khorramshahr-4 and hypersonic missile prototypes, underscore Iran’s focus on improving accuracy.

The program, supported by North Korean and Chinese technology transfers, has expanded despite U.N. Security Council Resolution 2231, which expired in October 2023, lifting restrictions on missile-related imports. Iran’s missile tests since 2015—exceeding 30 launches—have drawn condemnation from the U.S., EU, and Gulf states, who argue they violate the spirit of the 2015 nuclear deal.

Financially, Iran’s missile investments reflect a strategic allocation of resources to counter perceived external threats, while sanctions and economic pressures have constrained its conventional military modernization. Neighboring countries, including Saudi Arabia and the UAE, have increased spending on missile defense systems, such as U.S.-supplied interceptors, to mitigate risks.

The U.S. Treasury and European allies continue to impose sanctions on entities linked to Iran’s missile production, including the Shahid Hemmat and Shahid Bagheri Industrial Groups according to reports. Meanwhile, global markets remain sensitive to escalations, as demonstrated by oil price spikes during recent conflicts. With ongoing negotiations between Iran and world powers, the financial and geopolitical costs of Iran’s missile program are likely to remain a focal point for investors and policymakers.