This report analyzes four key aspects of US and Iranian strategic competition--sanctions, energy, arms control, and regime change. Its primary focus is on the ways in which the sanctions applied to Iran have changed US and Iranian competition since the fall of 2011. This escalation has been spurred by the creation of a series of far stronger US unilateral sanctions and the European Union s imposition of equally strong sanctions, both of which affect Iran s ability to export, its financial system, and its overall economy."

The United States faces major challenges in dealing with Iran, the threat of terrorism, and the tide of political instability in the Arabian Peninsula. The presence of some of the world s largest reserves of oil and natural gas, vital shipping lanes, and Shia populations throughout the region have made the peninsula the focal point of US and Iranian strategic competition. Moreover, large youth populations, high unemployment rates, and political systems with highly centralized power bases have posed other economic, political, and security challenges that the Gulf states must address and that the United States must take into consideration when forming strategy and policy."

The United States faces major challenges in dealing with Iran, the threat of terrorism, and the tide of political instability in the Arabian Peninsula. The presence of some of the world s largest reserves of oil and natural gas, vital shipping lanes, and Shia populations throughout the region have made the peninsula the focal point of US and Iranian strategic competition. Moreover, large youth populations, high unemployment rates, and political systems with highly centralized power bases have posed other economic, political, and security challenges that the Gulf states must address and that the United States must take into consideration when forming strategy and policy."