Iran’s threat toward U.S. assets and allies in the Middle East, such as Israel or Saudi Arabia, has greatly increased due to its successful development of precision-guided munitions, or PGM. Tehran’s capability to accurately strike targets many miles outside its territory was demonstrated through recent attacks on Saudi oil facilities and U.S. military bases in Iraq. The proliferation of PGMs in the hands of Iran’s proxies, mainly Hezbollah in Lebanon, the Houthis in Yemen, and Hamas in Gaza, could severely limit U.S. freedom of action in the region. Ironically, this is due to Iran’s own freedom of action, which enables its PGM capabilities and their spread.

Iran’s PGM project has a simple aim: to strike distant, high-value targets with high precision. This involves several stages, some of them carried out in the Iranian defense industries: research and development, manufacturing, experimentation, deployment, and operational employment. It also includes the conversion of imprecise rockets to precision-guided munitions. Its strategic rationale has to do with deterrence, but, in the case of an escalation, it could revolutionize how Iran and its proxies operate. It has the potential of gradually changing Iranian concepts of operations and those of Iran’s allies, as well.