If anybody thought that a change of talk in the Bush administration’s Iran policy would be enough to induce the “isolated” Tehran to give up its intransigence and toe the western line, the July 19 meeting proved him or her wrong. Before the Geneva meeting between Iran’s chief nuclear negotiator Saeed Jalili and European Union foreign policy chief Javier Solana, the US sent feelers to Tehran.

National Security Advisor M.K. Narayanan’s announcement at an international seminar that Iranian President Mahmoud Ahmadinejad would be converting what was originally meant to be a refuelling stop into an official stop-over in New Delhi on his way home from Sri Lanka generated much speculation about the reasons for and timing of the visit.

The United Nations Security Council imposed the third set of economic and trade sanctions against Iran on March 3, 2008 for refusing to halt its nuclear programme. Resolution 1803, sponsored by Britain, France and Germany, was backed by 14 of the Council’s 15 members; Indonesia abstained. The sanctions were targeted against 13 individuals and 12 companies with links to Iran’s nuclear and missile programmes. One of the 13 individuals targeted is Brig. Gen.

In an interesting development, the Gulf Co-operation Council (GCC) invited Iran for the first time last month to attend its summit meeting held in Doha. The GCC was established in 1981 to foster multilateral co-operation in the Persian Gulf, but had adopted an exclusionary policy vis-à-vis Iran though the latter was an important actor in regional politics and economy. The invitation to Iran seems to point to a GCC initiative to overcome differences and act together for the larger good of the region.

The latest US National Intelligence Estimate (NIE) on Iran’s nuclear programme, “Iran: Nuclear Intentions and Capabilities” of November 2007 (released on 3 December 2007) notes with “high confidence” that Tehran halted its nuclear weapons programme in the fall of 2003 and with “moderate confidence” that Iran had not restarted its nuclear weapons program as of mid-2007.

The United States imposed unilateral sanctions against Iran on October 25, 2007 to complement its efforts towards getting a third set of sanctions through the UNSC.

Iran began clandestinely developing a uranium enrichment programme in the early 1980s and claims that it is for peaceful purposes and solely for civilian use. President Mahmoud Ahmadinejad has claimed that firstly, Iran has no need for nuclear weapons and secondly, that nuclear weapons are forbidden by Islam.

The general impression is that Iran has gained tremendously from rising oil prices, fuelled by its vast oil wealth. In reality, however, given increased domestic consumption coupled with inefficient usage and subsidies, Iran is actually struggling to produce enough oil and gas for export. Without substantial upgrades Iran's oil production is expected to go through a gradual decline. Though Iran has abundant oil reserves, estimated at around 137 billion barrels, it has not even been able to generate its OPEC quota due to lack of technical expertise and skills.