Afghanistan
Afghan-Iranian relations improved after the fall of the Taliban in 2001. The countries have pursued joint projects in various sectors, including investment, development, trade, energy and science. The governments have also formed a close partnership on a range of issues, including efforts to combat Afghanistan’s illicit drug trade. Some U.S. officials have accused Iran of transferring weapons to the Taliban. During the past seven years, large numbers of Afghan refugees have flooded into Iran. Earlier this year, Tehran began forcefully deporting thousands of refugees back to Afghanistan.
Armenia
The two countries are currently working on a pipeline that, once completed, would deliver natural gas from Iran to Armenia. Armenia hosted official visits from Iranian President Mahmoud Ahmadinejad in October 2007 and Defense Minister Mostafa Mohammad Najar in November 2007, which helped to solidify bilateral agreements on a variety of energy and transportation projects. Iranian press reported that Secretary of Armenian National Security Council Arthur Baghdasaryan stressed his support for Iran’s civilian nuclear program in a recent visit. On November 24, Baghdasaryan said that the countries signed ten agreements covering political, economic and security sectors.
Azerbaijan
During a visit to Baku in August 2007, Ahmadinejad and his Azerbaijani counterpart, President Ilham Aliyev, indicated their desire to enhance bilateral ties, and in August 2008, Azerbaijani oil was rerouted through Iran in response to a regional oil disruption. Tehran disputes Baku’s hydrocarbon exploration rights in the Caspian Sea. It is also aware that Azerbaijan nationalists have the ability to provoke separatist sentiment among Iran’s Azerbaijani population, which constitutes nearly one-quarter of the country. In April 2008, Baku delayed the shipment of Russian nuclear material to Iran for more than a month, claiming it wanted to verify the shipment did not violate United Nations sanctions.
Gulf Cooperation Council (GCC)
Trade between the GCC and Iran has increased from $1.71 billion in 2000 to $8.71 billion in 2007, with imports from the GCC making up 12 percent of Iran’s total imports. In late October, during the first ever visit to Tehran by a GCC leader, Secretary General Abdel Rahman al-Attiyah indicated a desire to strengthen the organization’s ties with Iran. At the same time, member states are worried about Iran’s nuclear program and are working on a joint nuclear research program. In 2007, the United States announced $20 billion in anticipated arms sales to the Gulf, in part to counteract the growing strength of Iran.
• Qatar has a close relationship with Iran and in December 2007 invited Ahmadinejad to Doha for the annual GCC summit despite Iranian-Saudi tensions.
• Bahrain fears Iran will ignite tensions among its majority Shia population.
• The United Arab Emirates has commercial and banking ties to Iran; the United States believes Iran is using the Gulf state to evade UN sanctions.
• Saudi Arabia sees Iran as a regional adversary, yet has made efforts to cooperate with it; Ahmadinejad made his first visit to Saudi Arabia in 2007 and returned for the hajj.
Iraq
The 2003 ouster of Saddam Hussein led to significant Iranian influence in Iraq. Iran has become one of Iraq’s strongest trading partners; in 2008, Iran exported more than $2 billion in goods to Iran, with $1.2 billion going to the northern Kurdish provinces. Iran retains strong ties to Iraqi government officials, including organizing and training several Shi’ite political parties during their 20-year exile in Iran, and it provides funds for development and reconstruction projects. Iran also supports militant groups in Iraq by smuggling weapons and fighters into the country. In March 2008, Ahmadinejad became the first Iranian leader to visit Baghdad since the 1979 Iranian Revolution.
Pakistan
Pakistan’s support for the Taliban caused tension with Iran and relations have improved since its fall in 2001. In Ahmadinejad’s first visit to Pakistan, in April 2008, he met with then Pakistani President Pervez Musharraf and discussed regional security issues and an Iranian-Pakistani-Indian pipeline project. The sides are still negotiating the terms of the deal. In October, Tehran and Islamabad agreed to increase bilateral economic cooperation in a variety of sectors. Iran has also turned to Pakistan for support in developing its nuclear program. At the same time, Iran has a range of ties with Pakistan’s neighbor, India. New Delhi hopes that its use of an Iranian port will help it to gain trading access to Afghanistan while bypassing Pakistan.
Turkey
Iran and Turkey have cooperated in an effort to combat mutual concern of Kurdish separatism. In February 2006, the countries signed an agreement stating that Turkey will fight against the People’s Mujahadeen and Iran will fight against the Kurdistan People’s Party, or PKK, in Turkey. The countries also recently announced a $12 billion deal that will allow Turkey to develop an Iranian offshore gas field and purchase the gas after the project is completed. Previous indications were that Turkey opposed Iran’s nuclear efforts, however, a recent controversial statement by Turkish Prime Minister Recep Tayyip Erdogan points to a more complicated stance.
Turkmenistan
In 2007, Iran was Ashgabat’s second-largest export partner. Relations soured earlier this year when Turkmenistan ceased gas exports to Iran citing technical issues. Ashgabat renewed gas shipments to Iran in April after Tehran agreed to a price increase on the imported gas. The status of nearly three million ethnic Turkmen in Iran is also a potential point of conflict between the two countries. Turkmenistan is also a signatory to a declaration between Caspian Sea states that says all signatories to the nuclear non-proliferation treaty (NPT) have the right to develop nuclear power for peaceful purposes within NPT and International Atomic Energy Association frameworks. Turkmenistan’s indecision in terms of how to divide the Caspian seabed has caused delineation negotiations with Azerbaijan, Iran and Kazakhstan to stall.

