You make some good points from time to time. But how is it not military capability? Our military is strong compared to the region. But compared to the US? No chanceIt’s not military capability, it’s political problems.
Khamenai is a dove more or less. Doesn’t like direct conflict and doesn’t like kinetic actions. Complete opposite of his predecessor (Khomeini) that embraced conflict to achieve one’s vision as a Hawk.
On top of that you have the corrupt “founding” families and those tied to their circle (oligarchs, political Allies, elite) who have no interest for conflict while they make money busting US sanctions. So they too put pressure on Khamenai to show restraint because they have a good thing going and why disrupt the Apple cart.
Then you have the IRGC, which many think are bunch of hardliners. Far from it, the IRGC itself has competing viewpoints like any organization. For example, some voices within the IRGC in 2011 didn’t want to interfere in Syrian civil war and join the war and thought it was better to negotiate a power sharing agreement with the West in a post-Assad world similar to how Iraq is now governed. Lucky they didn’t listen to that crowd because Syria right now would be the Arabian version of Ukraine for the West.
Which brings me to my point: it’s not military capability that holds Iran back it’s the factions that make up the opaque power structure in Iran do not want direct conflict. After all, from 1980’s to 2000’s, Iran attacked many Israeli interests around the world when it was just a brand new government with a purged military and security force, let alone its intelligence arm (SAVAK) that was completely destroyed.
So even if IRGC pushes for direct retribution and an aggressive “attack”, many factions (liberals, reformists, bazaaris, centrist, and those who care only about keeping the status quo and making money) will push back and say no.
Khamenai then has to appease most of the Republic and also has his own viewpoint (which is notably dovish).
Our only military capability worth mentioning is missiles, which they previously showed they are very capable of defending against. Not to mention they have missiles of their own.
How long would we be able to sustain a shock and awe campaign similar to what they did to the Iraqis? How long would we survive after they take out all of our refineries?