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Khamenei's growing power and sense of mission have manifested themselves abroad. He has unleashed the Guards Corps against the U.S. and its allies in Iraq and Afghanistan. As the Treasury Department recently revealed, Tehran has ongoing ties to al Qaeda. These date back at least a decade, as the 9/11 Commission Report depicted Iranian complicity in the safe travel of al Qaeda operatives and chronicled al Qaeda contact with the Lebanese Hezbollah and Tehran's éminence grise to Arab Islamic radicals, the late Imad Mughniyeh.

Many in Washington and Europe would like to believe that the assassination plot in Washington came from a "faction" within the Iranian government—that is, that Khamenei didn't order the killing and Washington should therefore be cautious in its response. But neither this analysis nor the policy recommendation is compelling.

Lord help Qasim Soleimani—the man who likely has control over the Revolutionary Guards' elite dark-arts Qods Force, which apparently orchestrated this assassination scheme—if he didn't clear the operation with Khamenei. He will lose his job and perhaps his life. For 20 years, Khamenei has been constructing a political system that is now more submissive to him than revolutionary Iran was to Khomeini.

And for 20 years the U.S. has sent mixed messages to the supreme leader. Under both Democratic and Republican presidents, the U.S. has tried to reach out to Iran, to engage it in dialogue that would lead away from confrontation. For Khamenei such attempts at engagement have been poisonous, feeding his profound fear of a Western cultural invasion and the destruction of Islamic values.

This deeply offensive message of peace has alternated with American-led wars against Iraq and Afghanistan. These wars spooked Tehran, radiating American strength for a time, but such visions ebbed.

Khamenei probably approved a strike in Washington because he no longer fears American military might. Iran's advancing nuclear-weapons program has undoubtedly fortified his spine, as American presidents have called it "unacceptable" yet done nothing about it. And neither George W. Bush nor Barack Obama retaliated against Iran's murderous missions in Iraq and Afghanistan.

President Obama has clearly shown he wants no part—or any Israeli part—in a preventive military strike against Iran's nuclear sites. And Mr. Obama has pulled almost all U.S. troops out of Iraq and clearly wants to do the same in Afghanistan. Many Americans may view that as a blessing, but it is also clearly a sign that Washington no longer has the desire to maintain hegemony in the Middle East.

That's an invitation to someone like Khamenei to push further, to attack both America and Iran's most detested Middle Eastern rival, the virulently anti-Shiite Saudi Arabia. In the Islamic Republic's conspiracy-laden world, the Saudis are part of the anti-Iranian American Arab realm, which is currently trying to down Iran's close ally, Bashar al-Assad's Syria, and squash the Shiites of Bahrain. Blowing up the Saudi ambassador in Washington would be an appealing counterstroke against the two foreign forces that Khamenei detests most.

The Obama administration will be tempted to respond against Iran with further unilateral and multilateral sanctions. More sanctions aren't a bad idea—targeted sanctions against the Revolutionary Guards and the sale of gasoline made from Iranian crude can hurt Tehran financially. But they will not scare it. The White House needs to respond militarily to this outrage. If we don't, we are asking for it.

In the 1980s and '90s, the U.S. failed to take Secretary of State George Shultz's wise counsel after Khomeini's minions bombed us in Lebanon. We didn't make terrorism a casus belli, instead treating it as a crime, only lobbing a few missiles at Afghan rock huts and a Sudanese pharmaceutical plant. But we should treat it as a casus belli. The price we will pay now will surely be less than the price we will pay later.