Iran: U.S. Concerns and Policy Responses

Kenneth Katzman
Specialist in Middle Eastern Affairs

President Obama has said his Administration shares the goals of previous Administrations to contain Iran's strategic capabilities and regional influence. The Obama Administration has not changed the Bush Administration's characterization of Iran as a "profound threat to U.S. national security interests," a perception generated not only by Iran's nuclear program but also by its military assistance to armed groups in Iraq and Afghanistan, to the Palestinian group Hamas, and to Lebanese Hezbollah. However, the Obama Administration has formulated approaches to achieve those goals that differ from those of its predecessor by expanding direct diplomatic engagement with Iran's government and by downplaying discussion of potential U.S. military action against Iranian nuclear facilities. With the nuclear issue unresolved, the domestic unrest in Iran that has burgeoned since alleged wide scale fraud was committed in Iran's June 12, 2009, presidential election has presented the Administration with a potential choice of continuing the engagement or backing the opposition "Green movement." In December 2009, Administration statements shifted toward greater public support of the Green movement, but Administration officials appear to believe that the opposition's prospects are enhanced by a low U.S. public profile on the unrest. Congressional resolutions and legislation since mid-2009 show growing congressional attention to the plight of Iran's opposition and support for steps to enhance the opposition's prospects. Iran's neighbors continue to engage the regime in normal trade and diplomatic exchange, although it is widely believed that many regional leaders, particularly the Persian Gulf states, are hoping for a regime collapse. 

At the same time, the Administration does not want to forego its diplomatic options to blunt Iran's nuclear progress and says it remains open to a nuclear deal if Iran fully accepts a framework Iran tentatively agreed to in multilateral talks on October 1, 2009. The framework provided for Russia and France to reprocess some of Iran's low-enriched uranium for medical use. However, Iran did not accept the technical details of this by the notional deadline of the end of 2009, sparking renewed multilateral discussions of more U.N. sanctions. Any new sanctions are expected to target members and companies of Iran's Revolutionary Guard Corps, which is not only a pillar of Iran's nuclear program but is also the main element used by the regime to crack down against the protesters. Some believe that sanctions that target the regime's security forces, reduce its ability to monitor the Internet, and undermine the international legitimacy of regime leaders might help the domestic opposition materially change or even topple the regime. 

Additional U.N. Security Council sanctions would build on those put in place since 2006. These sanctions generally are targeted against WMD-related trade with Iran, but also ban Iran from transferring arms outside Iran and restrict dealings with some Iranian banks. Separate U.S. efforts to persuade European governments to curb trade with, investment in, and credits for Iran, and to convince foreign banks not to do business with Iran, are intended to compound the U.N. pressure. Each chamber in the 111th Congress has passed separate legislation to try to curb sales to Iran of gasoline, which many Members believe could help pressure Iran into a nuclear settlement or undermine the regime's popularity even further. Others believe such steps could help the regime rebuild its support by painting the international community as punitive against the Iranian people. For further information, see CRS Report RS20871, Iran Sanctions, by Kenneth Katzman; CRS Report R40849, Iran: Regional Perspectives and U.S. Policy, coordinated by Casey L. Addis; and CRS Report RL34544,
Iran's Nuclear Program: Status, by Paul K. Kerr.


Date of Report: February 16, 2010
Number of Pages: 66
Order Number: RL32048
Price: $29.95

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