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Summary

President Obama has said his Administration shares the goals of the previous Administration to contain Irans strategic capabilities and regional influence, but the Obama Administration formulated approaches to achieve those goals that differ from those of its predecessor in particular through expanded direct diplomatic engagement with Iran. This effort was put into practice with messages to the Iranian people by President Obama, and through invitations to and contact with Iranian diplomats at multilateral meetings, including those on Iran's nuclear program. The Administration also de-emphasized or discontinued policies that Iranian leaders considered hostile including: ratcheting up international sanctions, efforts to promote democracy in Iran, and openly discussing the potential for U.S. military action. The Administration strategy on Iran is in some flux because of the allegations of a stolen election by the challengers to declared winner of the June 12, 2009 presidential election, incumbent President Mahmoud Ahmadinejad, and the crackdown against protesters who demanded a new vote. President Obama has criticized Iran's use of violence against protesters, and observers say that the Administration might try to take advantage of Irans internal weakness to obtain a compromise that curbs Iran's nuclear program. If Iran refuses to return to the nuclear bargaining table, the Administration might focus, at an earlier than expected stage, on sanctioning and pressuring Iran. Bills in the 111th Congress, such as H.R. 2194 and S. 908, would tighten U.S. sanctions on Iran by amending the Iran Sanctions Act to penalize sales to Iran of gasoline and some of the measures contained in these bills have begun to advance as a consequence of the election-related violence. Congress also has passed resolutions that express solidarity with the demonstrators and condemn the regimes repression of them. The Obama Administration has not changed the previous Administrations characterization of Iran as a profound threat to U.S. national security interests, a perception generated primarily by Irans nuclear program and its military assistance to armed groups in Iraq and Afghanistan, to the Palestinian group Hamas, and to Lebanese Hezbollah. The U.S. policy approach was to try to prevent a nuclear breakout by Iran primarily by applying progressive multilateral economic pressure on Iran while also offering it potential cooperation should it suspend its enrichment of uranium. 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 entities and personalities; prevent Iran from transferring arms outside Iran; ban international travel by some Iranians; call for inspections of some Iranian sea and airborne cargo shipments; and call for restrictions on dealings with some Iranian banks. 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, began to weaken Iran's economy, compounding the effect of lower oil prices since mid-2008. To emphasize its approach, the George W. Bush Administration built a substantial naval presence in the Persian Gulf. This report is updated regularly. For further information, see CRS Report RS20871, The Iran Sanctions Act (ISA), by Kenneth Katzman, CRS Report RS22323, Irans 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.2194
• S.908
• S.2087
• S.2232

Related Reports:
• RL32048
• RL32048
• RL32048

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