This report discusses the developments in Iranian foreign policy, including their assistance the U.S. in ousting Saddam Hussein, their involvement with terrorist organizations, the developments made with respect to weapons of mass destruction, human rights concerns, and the Bush Administrations concerns with moving toward a regime change policy. It also details the Bush Administration's efforts to maintain the sanctions put in place by the Clinton Administration, as well as U.S. foreign policymakers division on which approach to take regarding Iran's political regime.

This report discusses the reasons that Iran is considered a threat to U.S. security, including Iran's nuclear program, involvement with terrorist organizations, and involvement with neighboring countries' local governments. The report also discusses ways which the U.S. hopes to modify Iran's behavior with sanctions, and the effectiveness of these sanctions.

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.