Tehran Moves Missile and Drone Production Underground Amid US Strikes
The Islamic Revolutionary Guard Corps (IRGC) announced on November 7, 2026, that its aerospace division has relocated its missile and drone manufacturing operations to newly constructed underground facilities. IRGC spokesperson Brigadier General Hossein Mohebbi confirmed the shift during a press conference in Tehran, reported Xinhua, stating that the move is designed to keep production running through heavy bombardment.
Satellite imagery analyzed by the British intelligence firm MAIAR and cited by the BBC reveals ongoing excavation and construction work at military sites across Iran, including the Garmdareh base in Karaj and the Shahroud facility in northern Iran. According to MAIAR analysts, at least 12 other military locations, encompassing missile complexes and air bases, show visible signs of repair following recent airstrikes. Former CIA analyst Jim Lamson said excavation around Shahroud is likely linked to missile production.
The disclosures follow a series of military actions by the United States in southern Iran. The semi-official Tasnim news agency reported that two missiles struck Qeshm Island. U.S. President Donald Trump stated on November 6 that American forces carried out a fresh, small-scale strike targeting Iranian air defense systems. This followed an earlier strike on Qeshm Island on November 2, according to reporting by The Wall Street Journal which cited American defense officials.
Iran’s IRGC released footage of Iran's Supreme Leader’s representative to the IRGC inspecting naval missile tunnels in southern Iran, housing anti-ship missiles and fast attack boats. pic.twitter.com/R2v2YMOory
Financing Network and Underground Base Infrastructure in the Persian Gulf
While surface facilities undergo repairs, the IRGC released video footage showcasing underground missile tunnels along the coasts of the Persian Gulf and the Gulf of Oman. These hardened structures house anti-ship missiles and fast attack boats designed for rapid deployment near the Strait of Hormuz. The tunnels use thick concrete and rock layers to protect stockpiles from airstrikes.
Behind these physical fortifications lies a financial apparatus designed to bypass international trade restrictions. Reporting from Kompas.com reveals that Iran has utilized a covert network of front organizations and shell companies. Data from leaked Bank Sepah documents shared on Telegram and WikiIran shows that 36 institutions held 1,2 miliar dollar AS in foreign currency and 1,8 miliar dollar AS in local currency by late 2024. These intermediary entities use oil revenue to purchase dual-use military equipment, pushing weapons imports from 442 juta dollar AS in the year ending March 2023 to 988 juta dollar AS the following year, and importing 2,3 miliar dollar AS in military gear between January 2025 and June 2026.

Iran threatens adversary assets while diplomacy remains deadlocked
General Mohebbi warned that Iran’s missile reach will continue to expand, asserting that all tangible and intangible assets of adversary nations remain within targeting distance. He added that the IRGC’s aerospace wing has intercepted and destroyed more than 260 manned and unmanned enemy aircraft during the current conflict.
Despite these military assertions, diplomatic efforts between Washington and Tehran remain deadlocked over fundamental disagreements. While U.S. officials weigh the domestic political costs of sustained military engagement—noting in post-midterm evaluations that foreign conflicts pose electoral risks—the timeline for any subsequent military escalation or diplomatic resumption remains unconfirmed by either government.
Frequently Asked Questions About Iran’s Underground Facilities
Where are Iran’s new underground missile facilities located?
According to satellite analysis cited by the BBC, Iran’s subterranean bases and manufacturing tunnels are situated along the southern coast near the Persian Gulf and the Gulf of Oman, with additional construction and excavation identified at bases in Karaj, Shahroud, and Kermanshah.
How is Iran funding its weapons production despite U.S. sanctions?
Reporting by Kompas.com indicates that Iran utilizes a clandestine network of front organizations and shell companies—using leaked banking records as evidence—to channel oil revenue into the purchase of raw materials and military components.
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What specific military targets did the United States strike recently?
U.S. forces targeted Iranian air defense systems and struck Qeshm Island in southern Iran in early November 2026, as documented by The Wall Street Journal and Tasnim news agency reports.
What capabilities do the IRGC underground bases provide?
The hardened subterranean complexes allow the IRGC to maintain uninterrupted production of Shahed-136 drones and ballistic missiles while providing protected launching points for anti-ship systems near the Strait of Hormuz.