All about the latest spy war: how Iran and Israel are relying heavily on espionage

Espionage – intelligence, counter-intelligence, spies – is a central element of statecraft. It has been so since the ancient period, and continues to remain extremely relevant. As conflict and war engulfs contemporary global geopolitics, espionage has taken on an even greater role. The latest spy war is playing out between the two biggest actors in West Asia: Iran and Israel.

The U.S. is also very much in the middle of this battle between the two adversaries. Asif Rehman, A CIA official working overseas, was arrested in the first week of November – on allegations of leaking US intelligence on Israeli plans for retaliation against Iran after the latter had launched a barrage of missiles on Israel on October 1st.

Iran-Israel rivalry: old animosities, new platforms

The Iran-Israel animosity is not new. Iran voted against Israel’s admission to the United Nations in 1949. Israel on its part, officially aims to ‘foment the overthrow of Iran’s Islamic Regime from within’. However, the protracted Israel-Hamas war, the humanitarian crisis in Gaza, and Iran’s role in the regional conflict through its proxies, has seen the confrontation reach new heights. Leaders of both countries have been vocal in their condemnation of the other.

However, there is another battle, raging just below the surface. A covert war has been in motion between the two countries – through their intelligence and counter-intelligence units, cyber warfare, and vast network of spies.

The sophistication of Israel’s intelligence

Israel has had a head start in the risky, yet crucial task of intelligence gathering. The country has a composite and sophisticated intelligence structure involving the Prime Minister’s office, the IDF, the Israeli police, and the Ministry of Foreign affairs.

Of these, the most important bodies are the Mossad, Shabak or Shin Bet, and the Military Intelligence Directorate or Aman. The first two are under the PM’s Office, and take care of foreign intelligence work and internal security respectively. While Aman is the military intelligence branch of the Israeli Defence Forces. The now well known Unit 8200 – credited for the pager and walkie-talkie attacks on Hezbollah operatives across Lebanon – is the signals-intelligence division of Aman.

With its many specialised divisions, resources, and trained individuals, Israeli intelligence has been largely able to repel Iran’s ‘axis of resistance’. Israel has also had a long period to plan, to recruit, and to structure their intelligence within Iran. Israel’s successful assassination of Hamas’ political leader Ismail Haniyeh in Tehran in July, where he was attending the inauguration of Iran’s new president Masoud Pezeshkian, sabotage of nuclear facilities, assassination of at least 6 of Iran’s top nuclear scientists between 2010 and 2021, and news of attacks on an IRGC facility and theft of classified documents – are all examples of Israel’s intelligence prowess.

Israeli intelligence however, did face criticism for its failure to anticipate and prevent the October 7 Hamas attack, which essentially is point zero for the current escalation.

Iran’s intelligence community and networks

Iran on the other hand, has spent a long time acquiring allies and proxies in the region in its fight against Israel. But it is now taking the intelligence game seriously. Iran’s intelligence community structure is also equally complex. The country has over a dozen intelligence agencies engaging in domestic and foreign surveillance, which report to different government ministries, branches of the military, or the police forces.

Two out of these agencies are crucial. These are the Ministry of Intelligence and Security (MOIS), which falls under the executive branch, and the Islamic Revolutionary Guard Corps Intelligence Organisation (IRGC-IO), which is part of the military. The Quds Force Division (IRGC-QF) is the IRGC’s external wing operating around the world. While the IRGC Intelligence Organisation is responsible for data collection and analysis, the Cyber Electronic Command of the Guards, the IRGC-CEC oversees the cyber component of various missions.

Iran’s espionage efforts are grounded in recruitment, and information warfare. Between October 14 and 31, Israeli authorities arrested some 20 individuals who were operating on behalf of Iran in different raids. Recruitment is targeted at Palestinians working within Israel and facing discrimination, Jewish migrants facing financial struggles, as well as Palestinians and Israeli Arabs motivated by ideology.

The Shin Bet has also blamed Iranian intelligence for posting high-paying job offers in exchange for carrying out operations at Tehran’s behest. The tasks involved include intelligence collection by photographing important sites, Israeli officials’ residences, as well as assassinations. Iranian intelligence is using social media to contact and lure potential spies.

Changing times, new strategies: intelligence and counter-intelligence

Changes in Israel’s social fabric after the October 7 attack, increasing dissatisfaction with the Netanyahu-led government, especially regarding its failure to resolve the hostage crisis, opposition to judicial changes, and disillusionment with the Zionist agenda have also contributed to the relative success of Iran’s espionage in recent past.

Not only this, Iran is also known to discredit adversary spy agencies by planting false stories – hoping they will be picked up – and later proving them wrong. Meanwhile, Israel – which is known to keep its intelligence activities secret – has resorted to publicising action against those it suspects of being spies. It hopes – and not without merit – to discourage recruitment by demonstrating that strict punishment awaits those who get involved.

In this war within a war, both sides are striving to gain the upper hand using technology, cyber warfare, human intelligence, social media, lucrative financial offers and tapping into ideology for recruitment, misinformation, control over public narrative... the list goes on.
With no real and immediate solution to the West Asian crisis, this is very likely only the beginning.