This report outlines Iran's activities and influence in Iraq. Iran is materially assisting major Shiite Muslim political factions in Iraq, most of which have longstanding ideological, political, and religious ties to Tehran, and their armed militias.

The Kurdish-inhabited region of northern Iraq is relatively peaceful and prospering economically, but the Iraqi Kurds' political autonomy and political strength in post- Saddam Iraq is causing friction with Arab leaders in Iraq, Turkey, and Iran. However, an overall reduction in violence in Iraq, coupled with continued U.S. political influence over the Kurds, is likely to prevent a destabilizing escalation of the Iraqi Kurd-Arab disputes. Also see CRS Report RL31339, Iraq: Post-Saddam Governance and Security, by Kenneth Katzman.

The Kurdish-inhabited region of northern Iraq is relatively peaceful and prospering economically, but the Iraqi Kurds' political autonomy and political strength in post- Saddam Iraq is causing friction with Arab leaders in Iraq, Turkey, and Iran. However, an overall reduction in violence in Iraq, coupled with continued U.S. political influence over the Kurds, is likely to prevent a destabilizing escalation of the Iraqi Kurd-Arab disputes. Also see CRS Report RL31339, Iraq: Post-Saddam Governance and Security, by Kenneth Katzman.

The Kurdish-inhabited region of northern Iraq is relatively peaceful and prospering economically, but the Iraqi Kurds' political autonomy and political strength in post- Saddam Iraq is causing friction with Arab leaders in Iraq, Turkey, and Iran. However, an overall reduction in violence in Iraq, coupled with continued U.S. political influence over the Kurds, is likely to prevent a destabilizing escalation of the Iraqi Kurd-Arab disputes. Also see CRS Report RL31339, Iraq: Post-Saddam Governance and Security, by Kenneth Katzman.

A 1996 amendment to the Foreign Sovereign Immunities Act (FSIA) enables American victims of international terrorist acts supported by certain States designated by the State Department as supporters of terrorism - Cuba, Iran, North Korea, Sudan, Syria, and previously Iraq and Libya - to bring suit in U.S. courts to seek monetary damages. This report, which will be updated, provides an overview of these issues and relevant legislation (H.R. 5167).

A 1996 amendment to the Foreign Sovereign Immunities Act (FSIA) enables American victims of international terrorist acts supported by certain States designated by the State Department as supporters of terrorism - Cuba, Iran, North Korea, Sudan, Syria, and previously Iraq and Libya - to bring suit in U.S. courts to seek monetary damages. This report, which will be updated, provides an overview of these issues and relevant legislation (H.R. 5167).

Iran is materially assisting and influencing major Shiite Muslim factions in Iraq, most of which have ideological, political, and religious ties to Tehran. Among these factions is that of hardline anti-U.S. cleric Moqtada Al Sadr, whose Mahdi Army militia, according to some observers, serves as a proxy force for Tehran against the United States.

Iran is materially assisting and influencing major Shiite Muslim factions in Iraq, most of which have ideological, political, and religious ties to Tehran. Among these factions is that of hardline anti-U.S. cleric Moqtada Al Sadr, whose Mahdi Army militia, according to some observers, serves as a proxy force for Tehran against the United States.

Iran is materially assisting and attempting to influence, in most cases against the United States, major Shiite Muslim factions in Iraq, most of which have ideological, political, and religious ties to Tehran. The Administration asserts that Tehran is actively directing, training, and arming Shiite militiamen linked, to varying degrees, to hardline anti-U.S. cleric Moqtada Al Sadr. Some analysts see a virtual "proxy war" between the United States and Iran inside Iraq.

Iran is materially assisting all major Shiite Muslim political factions in Iraq, most of which have longstanding ideological, political, and religious ties to Tehran, and their armed militias. The Administration notes growing involvement by Tehran in actively directing training, and arming Shiite militiamen linked, to varying degrees, to hardline cleric Moqtada Al Sadr. Some analysis goes so far as to see a virtual "proxy war" between the United States and Iran inside Iraq.

With a conventional military and weapons of mass destruction (WMD) threat from Saddam Hussein's regime removed, Iran seeks to ensure that Iraq can never again become a threat to Iran, either with or without U.S. forces present in Iraq. By supporting armed Shiite factions, Iran's influence in Iraq has at times hindered U.S. efforts to stabilize Iraq, and has heightened the U.S. threat perception of Iran generally. However, Iran faces difficult choices in Iraq now that its protege Shiite factions, formerly united, are competing and often fighting each other.

Iran is materially assisting and influencing major Shiite Muslim factions in Iraq, most of which have ideological, political, and religious ties to Tehran. The Shiite faction of paramount concern to the Administration is that of Moqtada Al Sadr, whose Mahdi Army militia has periodically battled U.S. and Iraqi government forces, although it is currently relatively quiescent.