LONDON: A renewed nuclear deal with Iran will channel billions of dollars into funding the regime’s militias, spreading terror across the region and beyond, an Israeli diplomat has warned.

In an interview with the Sunday Telegraph, Joshua Zarka, deputy director general of the Foreign Ministry, said the Israeli government was “extremely troubled” by the possibility of Iran using funds from the deal to arm proxy militias to carry out attacks.

He added that sanctions being lifted from Tehran would lead to tensions rising between Iran and Israel, with Israeli Defense Minister Benny Gantz saying the country could strike Iran militarily if it was left with “no choice but to act.”

Analysts have said that a new Iran nuclear deal is on the horizon, which would see Washington’s sanctions on Tehran lifted in return for the regime agreeing to return to limits on its nuclear plans.

That would release billions of dollars of funding and allow Iran to enhance its oil exports to Western countries, with many major powers struggling with an energy crisis made worse by the cuts to Russian oil and gas products.

“Our assessment is that a large part of the money that the Iranians will receive as a result of the agreement is going to be spent on its proxies. On arming its proxies and financing its proxies. Lebanon is in a significant crisis. The money could basically be used to allow Hezbollah to have the run of Lebanon, which is extremely troubling,” Zarka said.

“Then we have Syria. Iran is going to double its efforts to entrench itself in Syria militarily. On the one hand Iranian militias will be encouraged because of the agreement and Iran will have much more money. Clearly the tensions between us and Iran in that region are going to grow significantly.”

He warned that “there is going to be significant growth in Iranian involvement” in Iraq, where Iran-backed militias have caused havoc, which he said would lead to more violence.

“And of course there’s the Houthis. They have targeted Saudi, UAE and others and will have the backing of a country that is more stable, has more money and that is going to try to continue destabilizing the region,” Zarka said.

“In 2023 a sunset clause is going to be hit, therefore it’s going to be legitimate for Iran to import and export missiles and missile technology. So clearly we are very much worried about that.”