This report examines India-Iran relations and U.S. interests. India's growing energy needs and its relatively benign view of Iran's intentions will likely cause policy differences between New Delhi and Washington. India seeks positive ties with Iran and is unlikely to downgrade its relationship with Tehran at the behest of external powers, but it is unlikely that the two will develop a broad and deep strategic alliance. India-Iran relations are also unlikely to derail the further development of close and productive U.S.-India relations on a number of fronts.

This report examines Iran's influence in Iraq post-Saddam. This is in large part because the dominant parties in Iraq have long-standing ideological, political, and religious sectarian ties to Tehran. A key U.S. concern is that Iran, seeking to ensure the political prospects of its proteges, supports Shiite militias that are committing sectarian violence. Since December 2006, the Administration has tried to reverse Iranian influence in Iraq while also engaging Iran diplomatically on Iraq.

This report examines various issues regard Iran and its nuclear program.International Atomic Energy Agency (IAEA) inspections since 2003 have revealed two decades’ worth of undeclared nuclear activities in Iran, including uranium enrichment and plutonium separation efforts. Iran agreed in 2003 to suspend sensitive activities in negotiations with Germany, France, and the UK (EU-3), which broke down in August 2005. On September 24, 2005, the IAEA Board of Governors found Iran to be in noncompliance with its Nuclear Nonproliferation Treaty (NPT) safeguards agreement and reported Iran’s case to the U.N. Security Council in February 2006. The Security Council called upon Iran to resuspend enrichment and reprocessing, reconsider construction of its heavy water reactor, ratify and implement the Additional Protocol, and implement transparency measures. Iran has continued its enrichment activities, failing to meet deadline after deadline. The Security Council passed UNSCR 1696 on July 31, 2006, and on December 23, 2006, the Security Council adopted limited sanctions under UNSCR 1737. The next deadline is February 23, 2007.