Iran is subject to a wide range of U.S. sanctions, restricting trade with, investment, and U.S. foreign aid to Iran, and requiring the United States to vote against international lending to Iran. A formal U.S. effort to curb international energy investment in Iran began in 1996 with the Iran Sanctions Act (ISA). ISA was first passed at a time of tightening U.S. sanctions on Iran. Most notable was a 1995 ban on U.S. trade with and investment in Iran. That ban has since been modified slightly to allow for some bilateral trade in luxury and humanitarian-related goods. In the 110th Congress, two bills passed the House (H.R. 1400 and H.R. 7112) that would add several ISA provisions.

Iranian President Mahmoud Ahmedinejad was elected June 24, 2005, to a four-year term, becoming the first non-cleric president in 24 years. He defeated former president Akbar Hashemi Rafsanjani in a run-off. Prior to his 2005 election to the presidency, Ahmadinejad did not hold an elected office and was a virtual unknown in the international arena. This report covers his background; his victory over the well-known former president Rafsanjani; his remarks about the West, including Israel; and recent visits to Iraq and Latin America.

Report discussing the most recent political developments in Iran, including who the country offers support to and opposes. The report also makes note of U.S. policy regarding these developments, as well as the measures put in place to ensure continued peaceful relations between the two countries.