### Iran's Interests

Situated in the cradle of Central Asia, Iran is poised to play a pivotal role in the development of the Caspian’s resources. Endowed with bountiful oil and gas reserves in the south, Iran views the Caspian Sea’s resource as primarily an opportunity for diplomatic advancement, although it could substantially boost its economy by charging transit fees. As the only littoral state with warm water access, Iran would like to cooperate with its neighbors to help transport the hydrocarbons to market.
However, Iran’s rivalries with the United States, Turkey, and Russia could prevent Iran from taking a leadership role in the region. The 1997 election of a moderate president, Mohammed Khatami, has raised hopes that these rivalries, especially the one most bitter -- the one with the US -- could abate. Iran has sought to improve relations and foster economic cooperation with its neighbors, particularly Turkey, and with the other newly independent states of the region.

For the time being, however, the US continues to pursue policies in Central Asia aimed to exclude Iran, primarily through sanctions imposed both by Executive Orders and through the Iran-Libya Sanctions Act. If US-Iranian relations do improve to such an extent that the sanctions could be dropped, all parties will stand to benefit, as discussed in the further sections of this report. Yet, at present, relations with the US remain hostile, despite some steps taken by both Iran and the US government in 1998 to develop a "road map to better relations" (a phrase used by Secretary of State, Madeline Albright).
Iran Links