the potential threat posed by Iran, at times pursuing limited engagement directly or through allies, and at other times leaning toward pursuing efforts to change Iran’s regime. Some believe a potential international crisis is looming over Iran’s nuclear program because a U.S.-supported effort by three European nations to prevent an Iranian nuclear breakout is faltering.

International Atomic Energy Agency (IAEA) inspections of Iran’s nuclear program since 2003 have revealed significant undeclared activities with potential applications for nuclear weapons, including uranium enrichment facilities and plutonium separation efforts. Ever on the brink of being declared in violation of the Nuclear Nonproliferation Treaty (NPT), Iran has allowed IAEA inspectors access only when pressed. Iran agreed to suspend its enrichment and reprocessing activities in exchange for promises of assistance from Germany, France, and the UK (EU-3). Negotiations with the EU-3 are ongoing, although, on August 1, 2005, Iran told the IAEA of its plans to resume uranium conversion, regardless of what the EU-3 offer. This report will be updated as needed.