US-Iranian relations are once again headline news after dropping off the radar for several months in the wake of the US National Intelligence Estimate in December 2007. In recent days, media and public attention has focused on the growing US diplomatic overtures to Tehran, as well as the reports about a possible military attack on Iran that continue to circulate. With all of the focus on the diplomatic and military fronts, there has been little attention paid lately to the middle ground between the two: the US financial campaign against Iran. Financial pressure may be the most important tool the US has in its arsenal to persuade Iran to abandon all of its nuclear ambitions. While the US approach has been successful in raising the financial costs for Tehran of its nuclear ambitions, the regime shows no signs yet of changing course. To succeed in this effort, the pressure will have to be ramped up significantly, making the choice for Iran far more stark than it is today.
