This report discusses issues for Congress regarding foreign policy toward Iran. 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.”

This report discusses the debate over U.S. policy toward Iran, much of which 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.

According to an Administration national security strategy document released on March 16, 2006, the United States "may face no greater challenge from a single country than Iran." The Bush Administration announced May 31, 2006, that it would negotiate with Iran in concert with U.S. allies. If diplomacy and sanctions do not succeed, some advocate military action against Iran's nuclear infrastructure rather than acquiescence to a nuclear-armed Iran. U.S. concerns regarding Iran include Iran's nuclear program, Iran's influence on Iraq by way of providing arms and other material assistance to Shiite Islamist militias, and Iran's human rights practices, which include strict limits on free expression and repression of ethnic and religious minorities.

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 -- resuspend 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.