Congressional Research Papers

Publication Date: 2007/01/25

Publication / Source: Congressional Research Service

Author: Kenneth Katzman

ILSA was introduced in the context of a tightening of U.S. sanctions on Iran during the first term of the Clinton Administration. In response to Iran’s stepped up nuclear program and its support to terrorist organizations (Hizbollah, Hamas, and Palestine Islamic Jihad), President Clinton issued Executive Order 12957 (March 15, 1995), which banned U.S. investment in Iran’s energy sector, and Executive Order 12959 (May 6, 1995), which banned U.S. trade with and investment in that country.

Publication Date: 2005/06/27

Publication / Source: Congressional Research Service

The Bush Administration has pursued several avenues to attempt to contain or end the potential threat posed by Iran, at times pursuing limited engagement, and at other times leaning toward pursuing efforts to change Iran’s regime. Some experts believe a potential crisis is looming over Iran’s nuclear program because the Bush Administration is skeptical that efforts by several European allies to prevent a nuclear breakout by Iran will succeed, although the Administration announced steps in March 2005 to support those talks. U.S. concerns have been heightened by the victory of Mahmoud Ahmadinejad, an admitted hardliner, in Iran’s presidential election on June 24, 2005. Some advocate military action against Iran’s nuclear infrastructure, but others believe that a combination of diplomatic and economic rewards and punishment are the only viable options on the nuclear issue. U.S. sanctions currently in effect ban or strictly limit U.S. trade, aid, and investment in Iran and penalize foreign firms that invest in Iran’s energy sector, but unilateral U.S. sanctions do not appear to have materially slowed Iran’s WMD programs to date.