Iran analysts are debating whether the Islamic Republic is on the verge of a historic transition — from a theocratic system to one in which the military holds real power.

Iran's Islamic Revolutionary Guard Corps (IRGC) — a force originally established in 1979 to protect the Islamic revolution — has morphed from a military faction into a vast economic and political empire.

The IRGC, through affiliated companies, commands roughly half of Iran's oil wealth, according to estimates, as well as sprawling interests in construction, telecommunications and export industries worth billions of dollars.

The transformation has been decades in the making — but the Iran war has dramatically accelerated it.

"Although, in the context of the state of emergency that has taken shape since the outbreak of the war on February 28, 2026, the country's strategic and operational command has officially been handed over to war headquarters and top generals," said Faraj Sarkohi, a Germany-based political analyst and author.