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Iran: Current Developments and U.S. Policy (CRS Report for Congress)

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Release Date Revised July 25, 2003
Report Number IB93033
Authors Kenneth Katzman, Foreign Affairs, Defense, and Trade Division
Source Agency Congressional Research Service
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Summary:

Thus far, the Bush Administration hascontinued most aspects of the containmentpolicies toward Iran that characterized precedingadministrations. During the first term ofthe Clinton Administration, as part of a policyof "dual containment" of Iran and Iraq, PresidentClinton imposed a ban on U.S. trade andinvestment in Iran in 1995, and a 1996 lawimposed sanctions on foreign investment inIran's energysector (Iran-LibyaSanctionsAct,ILSA). In keeping with a 1997 policy shifttoward engagement, the Clinton Administrationand Congress later eased sanctions toallowU.S. exports to Iran of food andmedicalsupplies and importation from Iran of goodssuch as carpets and caviar. The United Stateshas consistently worked with its allies toprevent arms and advanced technology salesto Iran and to limit Iran's influence overregional energy flows. U.S. purchases ofIranian crude oil and U.S. company investmentsin Iran remain barred. ILSA was renewedfor another 5 years on August 3, 2001(H.R. 1954, P.L. 107-24).
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