This report focuses on the United States' relationship with Iran and how the Obama Administration is handling prior administration's economic sanctions against Iran. The Obama Administration's policy approach toward Iran has contrasted with the Bush Administration's by attempting to couple the imposition of sanctions to an active and direct U.S. effort to negotiate with Iran on the nuclear issue. That approach was not initially altered because of the Iranian dispute over its June 12, 2009, elections.

Some officials of the Islamic Republic of Iran have recently renewed threats to close or exercise control over the Strait of Hormuz. This report explains Iranian threats to the Strait of Hormuz, and analyzes the implications of some scenarios for potential U.S. or international conflict with Iran, which include: outright closure of the Strait, harassment and/or infrastructure damage, and continued threat.

The Obama Administration identifies Iran as a major threat to U.S. national security interests. The sense of imminent crisis with Iran which greeted the beginning of 2012 follows three years in which the Obama Administration first offered Iran's leaders consistent and sustained engagement in exchange for limits to its nuclear program but, since 2010, has emphasized pressuring Iran through economic sanctions. This report discusses the effects of economic sanctions against Iran; support to the Iranian democracy movement; and opposition against Iranian human rights violations and Iranian support for Syrian human rights violations.

This report gives an overview of the U.S. sanctions in place on Iran and legislation that would enhance both the economic sanctions and human rights-related provisions of CISADA and other laws. It also discusses the measures that the United Nations and others have enacted against Iran and the effects of the sanctions.