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Summary:
With a conventional military and weapons of mass destruction (WMD) threat from Saddam Hussein's regime removed, Iran seeks to ensure that Iraq can never again become a threat to Iran, either with or without U.S. forces present in Iraq. Some believe that Iran's intentions go well beyond achieving Iraq's "neutrality"— that Iran wants to try to harness Iraq to Iran's broader regional policy goals and to help Iran defend against international criticism of Iran's nuclear program. Others believe Iran sees Iraq as providing lucrative investment opportunities and a growing market for Iranian products and contracts.
Iran has sought to achieve its goals in Iraq through several strategies: supporting pro-Iranian factions and armed militias; attempting to influence Iraqi political leaders and faction leaders; and building economic ties throughout Iraq that might accrue goodwill to Iran. It is Iran's support for armed Shiite factions that most concern U.S. officials. That Iranian activity has hindered—and continues to pose a threat to—U.S. efforts to stabilize Iraq, and has heightened the U.S. threat perception of Iran generally. However, Iran has suffered some set backs over the past year because its protege Shiite factions, formerly united, are increasingly competing with each other politically and losing support among the Iraqi public. The most pro-Iranian factions generally fared poorly in the January 31, 2009 provincial elections. This report will be updated; also see CRS Report RL32048, Iran: U.S. Concerns and Policy Responses, by Kenneth Katzman.
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