Iran: Current Developments and U.S. Policy

Publication Date: July 2003

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Iran

Abstract:

While continuing previous U.S. Administrations' policies of containing Iran while pursuing limited engagement with it, the the Bush Administration is evaluating whether or not to move more toward a regime change policy, and how to prevent Iran from obtaining a nuclear weapons capability. During the late 1990s, signs of moderation in Iran had stimulated the United States to try to engage Iran in broad, official talks. Relations took another downturn when Iran was grouped with North Korea and Iraq as part of the "axis of evil" identified in President Bush's January 29, 2002 State of the Union message. The grouping came despite Iran's tacit cooperation with the United States against the Taliban in the post-September 11, 2001 war in Afghanistan.

Iran was also quietly helpful in the U.S. effort to oust Iraq's Saddam Hussein in 2003, although Iran reportedly is supporting Shiite Islamic factions there that could greatly boost Iran's influence in post-war Iraq. Some Al Qaeda activists are in Iran as well, although Iran claims some are "in custody." The Bush Administration has warned Iran not to meddle in Iraq, to extradite any Al Qaeda in Iran, and to curb its nuclear program. The Bush Administration has sought to dampen speculation that the United States might take major military action against Iran to change its regime, but it has indicated support for demonstrators and others in Iran who call for major internal changes.

Iran's efforts to acquire weapons of mass destruction and delivery means, coupled with its support of terrorist groups, have long been key U.S. concerns. The concerns have been heightened recently by reported major strides in Iran's nuclear program.

Another U.S. concern has been Iran's opposition to the U.S.-led Middle East peace process since its inception in October 1991. Iran continues to provide material support to Hizballah in Lebanon and to Palestinian groups that oppose the Arab-Israeli peace process, such as Hamas and Palestinian Islamic Jihad. Iran's human rights practices, particularly its treatment of the Baha'i and the Jewish communities, are frequently criticized by U.S. officials and Members of Congress.

Thus far, the Bush Administration has continued most aspects of the containment policies toward Iran that characterized preceding administrations. During the first term of the Clinton Administration, as part of a policy of "dual containment" of Iran and Iraq, President Clinton imposed a ban on U.S. trade and investment in Iran in 1995, and a 1996 law imposed sanctions on foreign investment in Iran's energy sector (Iran-Libya Sanctions Act, ILSA). In keeping with a 1997 policy shift toward engagement, the Clinton Administration and Congress later eased sanctions to allow U.S. exports to Iran of food and medical supplies and importation from Iran of goods such as carpets and caviar. The United States has consistently worked with its allies to prevent arms and advanced technology sales to Iran and to limit Iran's influence over regional energy flows. U.S. purchases of Iranian crude oil and U.S. company investments in Iran remain barred. ILSA was renewed for another 5 years on August 3, 2001 (H.R. 1954, P.L. 107-24).