Iran Linked to Australian Arson Attacks, Raising Concerns Over Crime-Terror Nexus
Sydney, Australia – Australian authorities have uncovered a disturbing link between Iran’s Islamic Revolutionary Guard Corps (IRGC) and a series of arson attacks targeting Jewish-affiliated businesses in Australia, sparking a national security review and prompting the expulsion of Iran’s ambassador. The incidents, occurring in late 2024 and early 2025, have highlighted a growing concern over the intersection of organized crime and terrorism within the country.
The Australian Security Intelligence Organization (ASIO) publicly attributed two attacks to the IRGC in August 2025. The first, a firebombing of the Lewis Continental Kitchen in Sydney in October 2024, was coordinated by Sayed Mohammad Moosawi, formerly associated with the Nomads motorcycle gang. A second attack, in December 2024, severely damaged the Adass Israel Synagogue in Melbourne, resulting in over $20 million in damages.
ASIO Director-General Mike Burgess stated the IRGC utilized proxies to carry out the attacks, a tactic consistent with the group’s broader operational methodology. While no terrorism charges have been filed domestically, the revelations have prompted Australia to formally list the IRGC as a terrorist entity, aligning with designations already made by Canada and the United States.
The investigation has revealed a potential connection to illicit financial networks, specifically the lucrative black market for tobacco. Australia’s high tobacco excise tax – currently A$1.49 per 0.8 gram stick, increased in September 2025, equating to roughly US$26 for a pack of 20 – fuels a $10 billion annual illegal trade. Authorities believe proceeds from this illicit market have been used to finance terrorist activities, with the Australia Criminal Intelligence Commission (ACIC) identifying it as a “substantial financier to offshore terrorist groups.”
Prior to the synagogue and restaurant attacks, Melbourne experienced a string of similar incidents linked to Kazem “Kaz” Hamad, an illicit tobacco kingpin deported to Iraq in 2023. Hamad was allegedly involved in approximately 150 arson attacks targeting tobacco shops. A blue Volkswagen Golf used in an arson attack on the Lux nightclub in November 2024 was also allegedly used in the Adass Israel synagogue firebombing and a separate shooting, according to a joint report by the Australian Federal Police, ASIO, and Victoria Police. Investigators suspect the IRGC may be benefiting from Hamad’s tobacco trade, leveraging his criminal network to carry out attacks while maintaining plausible deniability.
This pattern echoes previous IRGC operations, including a 2024 plot to attack targets in Sri Lanka and the United States, which involved utilizing drug trafficker Farhad Shakeri and his network of organized criminals.
In response to the findings, the Australian government expelled the Iranian ambassador and suspended its embassy in August 2025. The IRGC’s designation as a terrorist entity is expected to enhance information sharing with the Five Eyes intelligence alliance and provide a legal framework for pursuing terrorism-related charges. Law enforcement has also increased efforts to dismantle the illicit tobacco market, with recent operations in Queensland and New South Wales resulting in the seizure of approximately $53.8 million worth of illegal tobacco products.
Experts suggest addressing Australia’s tobacco excise policy could be a key step in disrupting terrorist financing. Some have proposed a temporary freeze on planned price increases to allow for the development of long-term solutions. Alternatively, focusing on reducing tobacco consumption through public health initiatives could diminish the demand for illicit products and, consequently, the financial resources available to terrorist organizations.
