In a bold attempt to reshape the Middle East, Iran devised an ambitious plan to rebuild war-torn Syria and transform it into a satellite state under its influence. Modeled after America’s post-World War II Marshall Plan, Iran’s strategy aimed to gain deep political and economic leverage in Syria by pumping billions into reconstruction efforts. But as newly uncovered embassy documents show, that dream crumbled spectacularly.
Reuters reporters discovered troves of confidential papers scattered across the ransacked Iranian embassy in Damascus. These documents, once closely guarded, outlined Tehran’s vision of using Syria’s reconstruction as a springboard for regional dominance. The plan was crafted by an Iranian economic unit stationed in Damascus and laid out in a 33-page report dating back to May 2022.
Referencing America’s success in post-war Europe, Iran’s strategy proposed creating economic and cultural dependence by rebuilding Syria’s infrastructure—projects valued at a staggering $400 billion. The documents revealed hopes of cultivating loyalty from President Bashar al-Assad’s regime, establishing influence over critical sectors like energy, transport, and construction.
But this empire never materialized. In December 2024, Assad was overthrown by rebel factions hostile to Iran. The once ironclad alliance between Damascus and Tehran disintegrated overnight. Iran’s diplomats, paramilitaries, and business partners fled the country in haste. Its embassy was looted, leaving behind a paper trail of failed contracts, unpaid debts, and abandoned megaprojects.
Among the many failed investments: a €411 million power plant in Latakia now sits idle; an oil project in Syria’s eastern desert is deserted; a $26 million bridge over the Euphrates River was destroyed by a U.S. airstrike and never rebuilt. Altogether, Iran’s losses are staggering. One trader alone reported losing €16 million in vehicle parts shipped to Latakia. Estimates place Assad’s debt to Iran at over $30 billion.
Local corruption, Western sanctions, and persistent militant attacks further eroded Iran’s ability to complete its projects. Reuters interviewed Iranian and Syrian businessmen, many of whom confirmed how mismanagement and political instability doomed the endeavor.
For the new Syrian leadership, rebuilding is now a national priority—but not with Iran’s help. President Ahmed al-Sharaa, once a rebel commander, made it clear that Iran’s presence left behind deep scars. “The Syrian people have a wound caused by Iran, and we need a lot of time to heal,” he told Reuters.
Iran’s Foreign Ministry still insists that Syria should honor previous agreements, but the new administration, led by former fighters from Hayat Tahrir al-Sham, is unlikely to prioritize Iran’s demands.
In the end, Iran’s dream of turning Syria into its Mediterranean stronghold collapsed under the weight of war, debt, and shifting alliances. What was once touted as a $400 billion opportunity turned into a cautionary tale of imperial overreach.
