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Summary

The Bush Administration characterized Iran as a "profound threat to U.S. national security interests," a perception generated primarily by Iran's nuclear program and its military assistance to armed groups in Iraq and Afghanistan, to the Palestinian group Hamas, and to Lebanese Hezbollah. The Bush Administration's approach was to try to prevent a nuclear breakout by Iran by applying coordinated international economic pressure on Iran while also offering it potential cooperation should it comply with the international demands to suspend its enrichment of uranium. The incorporation of diplomacy and engagement into the overall U.S. strategy led the Administration to approve the participation of a high-level State Department official at multilateral nuclear talks with Iran on July 19, 2008, although that meeting, and subsequent discussions, have not resulted in Iran's acceptance of the international offer of incentives. To strengthen its approach, the Bush Administration maintained a substantial naval presence in the Persian Gulf, which U.S. commanders insist would prevent any Iranian attempts to close the crucial Strait of Hormuz for any extended period. Amid widespread recognition that most U.S. goals on Iran have not been accomplished, the Obama Administration, based on statements from President Obama and Secretary of State Hillary Clinton, is planning to try to expand direct engagement with Iran and to de-emphasize potential U.S. military action or efforts to promote democracy in Iran. Yet, there is a vigorous debate among experts over whether such shifts would yield clearer results. The policy decisions come as Iran enters its run-up to June 12, 2009 presidential elections, which most U.S. officials and experts hope will produce more moderate leadership in Iran. The multilateral efforts to pressure Iran include three U.N. Security Council resolutions (1737, 1747, and 1803) that ban weapons of mass destruction (WMD)-related trade with Iran; freeze the assets of Iran's nuclear and related entities and personalities; prevent Iran from transferring arms outside Iran; ban or require reporting on international travel by named Iranians; call for inspections of some Iranian sea and airborne cargo shipments; and call for restrictions on dealings with some Iranian banks. Further U.N. Security Council sanctions have been under consideration. Separate U.S. efforts to persuade European governments to curb trade, investment, and credits to Iran; and to convince foreign banks not to do business with Iran, are beginning to weaken Iran's economy, compounding the effect of a sharp drop in oil prices in late 2008. Bills in the 110th Congress, including H.R. 1400, S. 970, S. 3227, S. 3445, H.R. 7112, H.Con.Res. 362, and S.Res. 580 ? versions of which are likely to be introduced in the 111th Congress ? would tighten U.S. sanctions on Iran. This report is updated regularly. For further information, see CRS Report RS20871, The Iran Sanctions Act (ISA), by Kenneth Katzman, CRS Report RS22323, Iran's Activities and Influence in Iraq, by Kenneth Katzman, and CRS Report RL34544, Iran's Nuclear Program: Status, by Paul K. Kerr.

Related Legislation:
• H.R.1400
• S.970
• S.3227
• S.3445
• H.R.7112
• S.362
• S.R.580
• S.2087
• S.2232

Related Reports:
• RL32048
• RL32048
• RL32048

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