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.

This report discusses the current political state of Iran and its relationship with the United States. This report emphasizes in particular the Iranian presidential elections that took place on June 12, 2009; current U.S. efforts under President Obama to forge diplomatic talks with Iran while at the same time urging aggressive action in the way of certain economic and trade sanctions; and how current U.S. efforts under the Obama Administration differ and/or are similar to efforts under the Bush Administration.

Much of the debate over U.S. policy toward Iran has centered on the nature of the current regime; some believe that Iran, a country of about 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 George W. 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. This report discusses how the Obama Administration differs from the Bush Administration regarding strategy in Iran relations. This report also discusses the current political state of Iran, including incidents of violence and unrest.

This report analyzes and discusses Iran's 2009 presidential election, particularly the campaigns of reformist candidate Mir Hussein Musavi and incumbent President Mahmoud Ahmadinejad. Allegations of vote rigging and election fraud have led to protests by supporters of candidate Musavi and have provoked international attention. This report also discusses the Obama Administration's reaction to the election results. This report also discusses briefly the current relationship between the U.S. and Iran, as well as U.S. concerns regarding Iran, such as Iran's efforts at building a nuclear weapons program.