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.

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).