The Iran-Libya Sanctions Act (ILSA) was introduced in response to Iran's stepped-up nuclear program and its support to terrorist organizations. No firms have been sanctioned under ILSA, and it has terminated with respect to Libya. Renewed in August 2001 for another five years, ILSA was scheduled to expire in August 2006. This report describes ILSA in detail, as well as related legislation.

No firms have been sanctioned under the Iran-Libya Sanctions Act (ILSA), and it has terminated with respect to Libya. In August 2001, the Iran-Libya Sanctions Act (ILSA, P.L. 104-172) was renewed for another five years (P.L. 107-24). No firms have been sanctioned under ILSA, and ILSA has terminated with respect to Libya. In the 109th Congress, H.R. 282 and S. 333 contain provisions that would modify ILSA. This report discusses various issues including the background and passages of the ILSA and its effectiveness.

This report discusses the political environment in Iraq and its implications on U.S. policy. Much of the debate over U.S. policy toward Iran has centered on the nature of the current regime. Some experts believe that Iran, a country of almost 70 million people, is a threat to U.S. interests because hardliners in Iran’s regime dominate and set a policy direction intended to challenge U.S. influence and allies in the region. President Bush, in his January 29, 2002, State of the Union message, labeled Iran part of an “axis of evil” along with Iraq and North Korea.

Report discussing U.S. concerns with Iran, including concerns relating to endorsements given to terrorist organizations by the Iranian government, nuclear weaponry, and human rights practices. The report also discusses whether or not the U.S. will impose sanctions on Iran due to a recent violation of a previously discussed agreement regarding uranium enrichment.

According to the Administration's "National Security Strategy" document released on March 16, 2006, the United States "may face no greater challenge from a single country than Iran." To date, the Bush Administration has pursued several avenues to attempt to contain the potential threat posed by Iran, including supporting a long-term policy of changing Iran's regime. Iran's nuclear program is not the only major U.S. concern on Iran. Successive administrations have pointed to the threat posed by Iran's policy in the Near East region, particularly material support to groups that use violence to prevent or complicate Israeli-Arab peace. Iran's human rights practices and strict limits on free expression have been consistently criticized by official U.S. and U.N. reports.

Iran's influence over the post-Saddam government in Iraq is substantial because the predominant parties in that government have long enjoyed Tehran's sponsorship. An emerging concern is that Iran's influence has extended to support for militant groups in Iraq. U.S. officials say that sophisticated explosive devices are entering Iraq from Iran, suggesting that Iran, or factions within Iran, are backing Iraqi factions that use violence to oppose the U.S. presence in Iraq.

International Atomic Energy Agency (IAEA) inspections since 2003 have revealed almost two decades' worth of undeclared nuclear activities in Iran, including uranium enrichment and plutonium separation efforts. The Security Council called upon Iran to take steps requested of it by the IAEA Board in February -- reinstate its suspension of enrichment and reprocessing, reconsider construction of its heavy water reactor, ratify and implement the Additional Protocol, and implement transparency measures. Iran has continued enrichment activities and failed to meet the Security Council's request.