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Summary

The Bush Administration has 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 has been 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 highlevel 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. Based on statements during the campaign and since, the incoming Obama Administration is likely to focus more on consistent engagement with Iran and to de-emphasize the potential for U.S. military action or efforts to promote democracy in Iran. During 2006 and 2007, three U.N. Security Council resolutions (1737, 1747, and 1803) imposed sanctions 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 considered, although progress was slowed by U.S.-Russia tensions over Georgia in August 2008. 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. To strengthen its approach, the Bush Administration has 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. The Administration did not rule out military action if the other efforts to curb Iran's uranium enrichment program failed. Some believe that only a change of Iran's regime would end the threat posed by Iran, although regime change has not been a prominent feature of Bush Administration policy toward Iran since 2006. 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), and CRS Report RS22323, Iran's Activities and Influence in Iraq, both by Kenneth Katzman, and CRS Report RL34544, Iran's Nuclear Program: Status, by Paul 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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