The United States and Iran have not had formal diplomatic relations since 1979, although in late 2008 the Bush administration considered opening a U.S. Interests Section in Tehran. Philippe Welti, the Swiss envoy to Iran, currently serves as the U.S. representative to the Islamic Republic. There are a wide set of issues of concern to the United States vis-a-vis Iran, including:
Afghanistan – Iran and the United States both support President Hamid Karzai’s government and oppose a strengthened Taliban. Since the demise of the Taliban in 2001, Iran has helped in reconstruction efforts and played a constructive role in the Bonn Process, which established the Karzai government. Iran has deported some of the approximately 1.5 million Afghan refugees it claims live in Iran. Top U.S. officials have accused Iran of offering some support to the Taliban to assist its fight against U.S. and NATO forces, to gather knowledge and to strengthen its position if the Taliban returns to power. On February 15, U.S. Special Representative to Afghanistan and Pakistan Richard Holbrooke said that Iran should have a more substantial role in the stabilization of Afghanistan.
Arab-Israeli Conflict – Iranian officials, including President Mahmoud Ahmadinejad, have issued statements challenging Israel’s right to exist. Israel views Iran and its nuclear enrichment efforts as an existential threat. Iran’s Supreme Leader Ayatollah Khamenei has called for a referendum involving all “native Palestinians, including Muslims, Jews and Christians,” as a means to end the Israeli- Palestinian conflict. During the recent conflict in Gaza, Iranian officials attended a summit in Qatar that called on Arab states to review their ties with Israel and for the suspension of the Arab Peace Initiative.
Economic Relations – In April 2000, President Clinton eased a ban on U.S. trade with Iran, allowing for the importation of certain Iranian products. Exports to Iran from the United States increased tenfold under the Bush administration.
Gulf States – In response to the development of Iran’s nuclear program the Gulf Cooperation Council (GCC) announced the creation of a joint nuclear research program in December 2006. In January 2008, the United States announced arms sales to the Gulf had reached $11.5 billion as part of an effort to counter Iran’s growing military strength. Nevertheless, Iran and the Gulf states maintain strong economic ties and Mahmoud Ahmadinejad was the first Iranian president to attend a GCC summit, in December 2007, and to perform the hajj in Saudi Arabia.
Iraq – Iran exercises substantial political, economic and military influence in Iraq. The United States accuses Iran of meddling in Iraqi affairs. Smuggling from Iran has encouraged U.S. forces to increase security at border crossings. Iranians fear a long-term U.S. presence in Iraq would facilitate future U.S. attacks against Iran. Iran considers the establishment of an autonomous Kurdish region in northern Iraq as a threat because it has a large Kurdish population and, like the United States, supports the territorial integrity of Iraq. Iran views the Party of Free Life of Kurdistan (PJAK), the Iranian division of the Kurdistan Worker’s Party (PKK) based in northern Iraq, as a threat and has attacked its camps.
Nuclear Proliferation – The United States seeks to curb Iranian efforts to develop its nuclear program. Iran states that its nuclear program serves peaceful purposes but refuses to cooperate with UN inspectors. In addition to three rounds of UN sanctions against Iran for uranium enrichment, the United States has enacted its own sanctions. These measures have targeted Iranian companies and U.S. and foreign entities that conduct business with Iran. The United States has also addressed the nuclear program though diplomatic means. In June 2006, the P5+1, including the United States, presented Iran with a package of incentives and potential sanctions for halting uranium enrichment. The group, which most recently met on February 4, has offered additional incentives for Iran to halt uranium enrichment since 2006.
State Sponsorship of Terrorism – Iran supports groups that the United States designates as terrorist organizations. In October 2007, President Bush labeled the Qods Force of the Iranian Revolutionary Guard Corps as a “specially designated global terrorist entity.” Iran also provides weapons and financial aid to other militant groups, including Hamas and Hezbollah, which the United States labels as terrorist organizations.
