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October 1983

US Marine base in Beirut, Lebanon, is bombed killing more than 200 people; simultaneous attack occurs at base of French peacekeepers. (Banks, Day, Muller 479)

January 23, 1984

Alleging Iranian involvement in Marine base bombing, US State Department adds Iran to list of nations supporting terrorism, thus subjecting it to more stringent export controls. (Congressional Research Service [CRS] 1988/1992, 100)

February 3, 1984

Iraq attacks oil tankers transporting Iranian crude. Iran retaliates by hitting Kuwaiti, Saudi ships because they support Iraq in Iran-Iraq war. "Tanker war" begins, affecting all shipping in the Persian Gulf. When evidence surfaces of Iraqi use of chemical weapons in war against Iran, Reagan administration, which formally is neutral in conflict, embargoes exports to both countries of five chemicals that could be used to produce chemical weapons. By 1990, number of controlled chemicals, labeled "chemical weapons precursors" by Australia Group, has grown to 50. (Facts on File 1988, 622; CRS 1988/1992, 100; US Department of Commerce 1990, Annual Foreign Policy Report to Congress, 31)

September 28, 1984

President Reagan adopts policy of generally denying license applications for export to Iran of aircraft, helicopters, related parts, other avionics, most other items on national security export control list. (CRS 1988/1992, 100)

June 1985

Fundamentalist Shiite faction in Lebanon takes Americans hostage in Beirut. National Security Advisor Robert C. McFarlane warns Iran that it can expect "proportional military response against bona fide military targets" if hostages are executed. Administration officials also confirm that Secretary of State George P. Shultz has sent letter to Iran warning its leaders that they would be held responsible for fate of hostages. (Banks, Day, Muller 1997, 479; Facts on File, 277)

November 2-3, 1986

One day after hostage David P. Jacobson is released, pro-Syrian Beirut newspaper reports that he and two other hostages released in past year were part of secret arms-for-hostages deal between US, Iran. (Facts on File, 825–26)

March 4, 1987

Special commission appointed by President Reagan to investigate Iranian arms deal releases its findings; Reagan admits his administration traded arms for hostages, but asserts that the result was due to faulty execution. The original strategy was to improve relations with Iran but it “deteriorated in its implementation into trading arms for hostages.” (Facts on File, 138; Washington Post, 5 March 197, A1)

August 6, 1987

US State Department, which previously supported more normal trade flows, recommends imposing more stringent export controls on certain nonmilitary items because of Iran's demonstrated ability to convert low-technology, "seemingly innocuous" items to military uses. State Department remains opposed to total trade ban, which Defense Department favors, because it would violate 1981 agreement under which US embassy hostages were freed. (The New York Times, 6 August 1987, A1)

October 1, 1987

Citing the threat to Gulf shipping from mines, the Commerce Department bans the export of scuba gear to Iran. (International Trade Reporter, 31 November 1987, 1185)

October 26, 1987

Following nearly unanimous passage of nonbinding resolutions in both houses of Congress calling for an end to imports of Iranian oil, Reagan invokes section 505 of the International Security and Development Cooperation Act of 1985 and embargoes all imports from Iran, prohibits export of 14 types of potentially militarily useful goods, including inboard and outboard motors, mobile communications equipment, electrical generators, hydrofoil vessels. As result, Iranian exports to US, mainly oil, drop to zero from $1.6 billion in 1987. (CRS 1988/1992, 103; International Trade Reporter, 28 October 1987, 1312; US Department of Commerce 1990, Annual Foreign Policy Report to Congress, 10)

July 1988

UN-sponsored ceasefire in Iran-Iraq war takes effect; peace talks begin. (Facts on File, 622)

February 1989

Ayatollah Ruhollah Khomeini calls on Muslims to "execute" British author Salman Rushdie for blasphemy in his novel, The Satanic Verses. Rushdie goes into hiding in UK; Iran breaks diplomatic relations with UK over incident. (Financial Times, 11 May 1990, 26)

June 8, 1989

Shortly after death of Khomeini, President George Bush conditions normalization of relations with Iran on "renunciation of terror," efforts by new government in Iran to "facilitate" release of American hostages still held in Lebanon. (Facts on File, 419)

November 6-7, 1989

US, Iran work out arrangement for releasing $567 million in frozen assets. Administration officials deny that deal is linked to Iranian President Ali Akbar Hashemi Rafsanjani's offer to help in obtaining release of hostages in Beirut. Iranian assets valued at $900 million remain frozen. In addition, Iran claims that US is withholding $12 billion in military equipment, spare parts that it has paid for; US insists amount is much smaller. (The New York Times, 8 November 1989, A14)

Late April 1990

Within days of one another, two American hostages, Robert Polhill and Frank Reed, are released in Lebanon following "intensive negotiations and pressure exerted on the kidnappers" by Iran, Syria. In written statement on each occasion, Bush thanks Syria and Iran, “whose efforts have contributed to the release” of the hostages. Despite hostage releases, State Department's report on nations supporting terrorism is released and both Syria and Iran remain on it. (Washington Post, 23–24 April 1990, A1; 1 May 1990, A18; 2 May 1990, A1)

May 1, 1990

State Department legal adviser, Abraham D. Sofaer, flies to The Hague for previously scheduled meeting to discuss disposition of remaining frozen Iranian assets. In Washington, White House spokesman Marlin Fitzwater says US will not ask Israel to release Arab prisoners, as demanded by Iran and its allies in Lebanon. Instead, "referring to the Israeli prisoners, 'our policy is that all hostages should be released.'" (Washington Post, 2 May 1990, A1)

May 3, 1990

While reiterating that he will not negotiate for release of hostages, Bush offers, as "gesture of goodwill," to help Iran find out what happened to four Iranians, including two diplomats, who disappeared in Lebanon in 1982 (all four are believed dead). Three days of talks on frozen assets end without agreement. (Washington Post, 4 May 1990, A1, A20)

Summer 1990

Iraq invades and occupies Kuwait, which prompts a massive build-up of US forces in Saudi Arabia and the Gulf. Iran denounces US intervention in the region, but remains neutral in the conflict and generally abides by UN resolutions sanctioning Iraq. (See Case 90-1 US, UN v. Iraq [1990-: Invasion of Kuwait])

November 1990

Citing a 1987 Treasury Department regulation, President Bush authorizes US companies to import Iranian oil on a case-by-case basis; payments for the oil will go into escrow fund established in 1981 as part of the Iran-US Claims Tribunal. (Wall Street Journal, 24 December 1990; Washington Post, 31 December 1990, A10)

July 1991

Professor Itashi Igarashi, who translated Salman Rushdie's Satanic Verses, is assassinated in Japan. Japanese police suspect that act was carried out with assistance of the Iranian embassy in Tokyo. (Financial Times, 29 April 1994, 4)

December 1991

Hostage Terry Anderson, the Associated Press’ chief Middle East correspondent, is released. Anderson, kidnapped in Beirut in March 1985, was last American hostage in Lebanon to be freed. (Washington Post, 25 March 2000, A5)

October 23, 1992

Iran-Iraq Arms Non-Proliferation Act, introduced by Senator John McCain (R-AZ), becomes law; it extends to Iran the same export and licensing prohibitions as are applied to Iraq under the Iraq Sanctions Act of 1990. Sanctions prohibit export of defense items, nuclear material, certain goods under Export Administration Act, and denial of Export-Import Bank financing. It also calls for sanctions against any foreign government or person contributing “knowingly and materially to the efforts by Iran and Iraq (or any agency or instrumentality of either such country) to acquire destabilizing numbers and types of advanced conventional weapons.” (President’s Export Council 1997, I-8, I-9; Public Law 102-484)

March 1994

The Central Bank of Iran announces that it has reached an agreement with Japan to reschedule $2.3 billion in loans despite US and British pressure on Japan to refuse to reschedule the debt. (Financial Times, 29 April 1994, 4)

November 24, 1994

US Office of Technology Assessment (OTA) reports that US officials blocked Iranian purchase of highly-enriched uranium (HEU) from a reactor in Kazakhstan; the material was sufficient to produce 20 nuclear warheads. (Nuclear Proliferation News, 20 December 1994)

December 1994

Under pressure from the United States, Japan announces it will delay a $470 million loan for an Iranian dam project. (Washington Post, 18 February 1995, A6)

January 25, 1995

Senator Alfonse D’Amato (R-NY) and Chairman of the Senate Banking Committee, introduces a bill to bar all trade with Iran, except humanitarian goods, and to cut off estimated $3.5-$4 billion a year in Iranian oil purchased by subsidiaries of US companies and sold in third countries. (Journal of Commerce, 22 February 1995, 1A; 29 March 1995, 1A)

February 1995

The US charges that, since October, Iran has been fortifying islands in the Straits of Hormuz with 5,000 troops equipped with anti-ship and surface-to-air missiles. The US also points to the Iranian acquisition of two submarines from Russia as a sign of a continuing Iranian threat to shipping in the Persian Gulf area. (Washington Post, 18 February 1995, A6)

March 15, 1995

The Clinton administration issues executive order barring US citizens and companies from financing, supervising and managing oil development projects in Iran. Executive order blocks pending Conoco deal with Iran valued at $1 billion. The move is widely seen as an attempt by administration to pre-empt congressional pressure for sanctions. (Journal of Commerce, 20 March 1995, 6A; 9 November 1995, 3A)

March 1995

Russia signs a $1 billion deal to provide Iran with a nuclear reactor; Russia rejects appeal by US Defense Secretary William Perry to cancel deal. (Journal of Commerce, 4 April 1995, 2A)

March 27, 1995

To supplement the sanctions bill introduced in January, Senator D'Amato (R-NY) introduces a bill that would punish foreign corporations that engage in trade with Iran. The "Comprehensive Iran Sanctions Act of 1995" would prohibit US government procurement from any foreign companies doing business with Iran and forbid the issuance of export licenses to affiliates of foreign firms operating in Iran. (Journal of Commerce, 29 March 1995, 1A)

April 3, 1995

Exxon announces that it will sign a $7.4 billion deal with Azerbaijan to develop oil fields in the Caspian Sea; the Iranian Oil Company was competing for the same 5 percent stake in the project. The US government pressured American companies to block Iran’s participation. (Journal of Commerce, 11 April 1995, 5A)

April 30, 1995

Citing proliferation and terrorist concerns, the White House announces it will ban, effective 8 June 1995, all direct US trade with Iran, as well as an estimated $4 billion in indirect trade, mainly by American companies selling Iranian oil in third countries. French, German and British officials call sanctions the wrong approach and announce they will continue their policy of “critical dialogue” with the Iranian regime. Oil analysts estimate that Iran will have no trouble finding buyers for its exports to replace American companies. (Journal of Commerce, 1 May 1995, 1A; 16 May 1995, 3A; Washington Post, 3 May 1995, A27)

July 1995

Citing increased costs for and delivery of equipment for any transaction involving Iran because of US sanctions, Royal Dutch/Shell pulls out of bid to develop the off-shore oil projects Conoco was forced to forgo in March. French company Total signs a $600 million deal to invest in two Sirri oilfields. The agreement marks the first time Iran has permitted a foreign oil company to invest in the country since the 1979 revolution. The Clinton administration protests the deal, and calls on France not to extend export credits. (Journal of Commerce, 5 July 1995; Washington Post, 9 August 1995, F1)

July 9, 1995

Although France, China, India and Pakistan have all increased their imports of Iranian crude, Iran negotiates with South Africa to store 15 million barrels of oil in response to a temporary surplus resulting from the ban on US firms’ purchases of Iranian oil. (Washington Post, 9 August 1995, F1)

November 11, 1995

Iran hosts an international investment conference in Tehran aimed at attracting FDI for its petroleum industry. While several major firms choose not to attend, the meeting draws representatives from over 100 foreign companies. (Journal of Commerce, 9 November 1995, 3A)

December 20, 1995

US Senate overwhelmingly approves the "Iran Foreign Oil Sanctions Act of 1995,” requiring US sanctions on foreign companies that invest over $40 million in Iran's oil and gas industries. Sen. Edward Kennedy (D-MA) adds a last-minute amendment to the bill that extends the sanctions to Libya. (Inside US Trade, 22 December 1995, 6)

December 31, 1995

US Congress passes a secret intelligence authorization bill that includes $18 million earmarked for covert action against the Tehran regime. The administration drops its opposition to the bill after language is changed from advocating the "overthrow" of the Tehran government to seeking to "change the behavior" of the regime. (The New York Times, 26 January 1996, A1)

January 1, 1996

IRNA, Iran's press agency, announces it will withdraw Iranian films from the American Academy Awards to protest the congressional decision to fund “covert” operations against Tehran. (Washington Post, 2 January 1996, C7)

January 4, 1996

Iranian officials announce they plan to sign a $700 million contract to purchase Russian airliners. Because of US export sanctions, however, Iran is forced to purchase older models that lack US components. (Journal of Commerce, 5 January 1996, 1A)

January 6, 1996

Iran tests a Chinese-built cruise missile in the Persian Gulf. (The New York Times, 31 January 1996, A5)

February 14, 1996

Senator D'Amato (R-NY) accuses Germany of subsidizing Iran's military threat by rescheduling Tehran's debt. (Financial Times, 15 February 1996, 5)

February 28, 1996

Senator D'Amato sends a letter to the chairman of the Japanese JGC Corporation warning it of possible consequences should it sign onto a deal to develop Iran's off-shore natural gas reserves. (Wall Street Journal, 1 March 1996, A11)

March 7, 1996

Though Iranian officials deny it, US and Israeli intelligence sources allege Iranian involvement in a recent wave of terrorist attacks in Israel. (The New York Times, 8 March 1996, A8)

April 30, 1996

Belgian customs officials seize a large mortar from an Iranian shipment of pickles destined for Munich, Germany. Belgian officials speculate the military equipment may have been meant for attacks targeting Israeli interests in Europe. (The New York Times, 1 May 1996, A8)

May 2, 1996

US military officials charge Iran has acquired Nodong II missiles from North Korea and is building underground bunkers to deploy them. (Reuters, 2 May 1996)

May 9, 1996

German Foreign Minister Klaus Kinkel rejects request from US Secretary of State Christopher to isolate Iran, cites progress made in human rights, hostage, and chemical weapons proliferation issues as a result of Europe's engagement policy. (Reuters, 9 May 1996)

June 19, 1996

Iran, Libya sanctions bill passes unanimously in the House of Representatives. (Journal of Commerce, 20 June 1996, 5A)

June 25, 1996

A truck bomb explodes outside a US Air Force housing complex near Dhahran, Saudi Arabia, killing 19 American servicemen. Iran will later be suspected of complicity in the attack. (New York Times, 3 August 1996, 4)

July 17, 1996

TWA flight 800 explodes in midair off the coast of Long Island killing all 230 on board. Terrorism is initially suspected but subsequently disproved. The explosion, however, propels passage of the Iran and Libya Sanctions Act within a few days. (Journal of Commerce, 19 July 1996, 12B)

July 23, 1996

The House passes Senate version of the Iran and Libya Sanctions Act (ILSA), which penalizes companies investing over $40 million in one year in Iran’s oil and gas sector; after one year, the annual investment limit triggering sanctions drops to $20 million. Potential sanctions include two or more of the following: (1) denial of credits from the US Export-Import Bank; (2) denial of export licenses for controlled goods or technology; (3) prohibition of loans of more than $10 million from US financial institutions for a 12-month period; (4) prohibition of foreign financial institutions from dealing in US government debt or US government funds; (5) prohibition against participation in any US government procurement project; (6) import restrictions.

Sanctions are required to be in effect for up to two years, and in “no case” can they be applied for less than one year. The President may waive all or part of the sanctions against a foreign company if doing so is deemed to be in the national interest, or if the target country agrees to “undertake substantial measures, including economic sanctions,” that will inhibit Iran’s efforts to carry out terrorist activities and fund the acquisition of weapons of mass destruction. Bill sunsets five years after enactment unless Congress votes to extend. (PL 104-172; Wall Street Journal, 17 July 1996, A16; HR 3107; Inside US Trade, 26 July 1996, 4; Reuters, 23 July 1996; Financial Times, 25 July 1996, 4)

July 24, 1996

EU lambastes passage of ILSA. EU Commission announces that regulation being drafted to retaliate against US sanctions on foreign companies trafficking in expropriated US property in Cuba could also be used to retaliate against ILSA. (See also Case 60-3 US v. Cuba [1960-; Castro]) (New York Times, 25 July 1996, A14)

Early August 1996

Defense Secretary William Perry and Speaker of the House Newt Gingrich allude publicly to suspicions of Iranian involvement in the June truck bombing in Saudi Arabia. (Financial Times, 5 August 1996, 1)

August 5, 1996

President Clinton signs ILSA. (New York Times, 6 August 1996, A1)

August 8, 1996

French president Jacques Chirac warns the US of “immediate retaliation” if French companies are targeted under ILSA. French energy firms Total and Elf have interests in the Iranian and Libyan oil industries. (Journal of Commerce, 8 August 1996, 2A)

August 10, 1996

Turkish Prime Minister Necmettin Erbakan visits Teheran to negotiate a $20 billion natural gas agreement covering the delivery of 140 cubic feet of gas per year and the building of gas pipelines in both countries. Turkey contends that the agreement involves trade, not investment, and therefore would not violate ILSA. (New York Times, 11 August 1996, 11; 14 August 1996, A20)

November 1996

Iranians demonstrate outside the German embassy in Tehran after a Berlin judge issues an international arrest warrant for Iran's supreme leader Ayatollah Sayyed Ali Khamenei and President Hashemi Rafsanjani for their involvement in the murder of four Kurdish-Iranian dissidents in Berlin in 1992. (International Herald Tribune, 20 November 1996, 8)

January 1997

Kazakhstan begins shipping oil across the Caspian Sea to Iran as part of an oil swap agreement negotiated in May 1996 involving 1 to 2 million tons of oil in the first year, increasing to 6 million tons by the year 2000. The deal does not trigger US sanctions, which explicitly exclude "hydrocarbons swaps with Iran by Kazakhstan, Azerbaijan, and Turkmenistan." (Financial Times, 6 January 1997, 4)

January 21, 1997

Turkmenistan and Iran announce construction of a natural gas pipeline linking Turkmen gas fields with the Iranian gas distribution system should be completed by October 1997. (Financial Times, 21 January 1997, 7)

February 11, 1997

US Navy says it has evidence Iran has been helping smuggle tens of thousands of tons of fuel oil out of Iraq each month in contravention of the UN embargo. (Wall Street Journal, 13 February 1997, A18)

February 26, 1997

Total, which is active in Libya, Cuba and Iran, countries against which Washington has applied secondary sanctions, considers selling its 55 percent stake in US operation, Total Petroleum (North America). Total has been trying to sell its US operation for several years, but industry observers suggest Total is exiting the US market to be less vulnerable to sanctions. Total Petroleum lost money in 1995 and 1996 and managed only slight profits in 1993 and 1994. (The Oil Daily, 26 February 1997, 1; 4 March 1997, 2)

April 10, 1997

A German court rules that the Iranian government was behind the murders of four Kurdish dissidents in Berlin in 1992; the German government expels four Iranian diplomats and recalls its ambassador from Tehran, suspends “critical dialogue.” Iran denies involvement, and retaliates by recalling its own ambassador from Bonn and expelling four German diplomats. The European Union declares a mass recall of ambassadors from Tehran and joins Germany on suspension of “critical dialogue.” New Zealand, Australia, and Canada also recall their ambassadors from Tehran. (Washington Post, 11 April 1997, A1; International Herald Tribune, 13 April 1997, 1; Financial Times, 13 April 1997, 3; Journal of Commerce, 15 April 1997, 1A)

May 15, 1997

Iran announces that it awarded a contract for its Balal oilfield to Britain's Pell Frischman Group, an engineering firm, and Canada's Bow Valley Energy Ltd. Reuters reports that the project could cost $140 million or more. Bakerie Minarak of Indonesia will form a joint venture with Bow Valley for the investment in the project. (Journal of Commerce, 15 May 1997, 1A)

May 23, 1997

Iran holds presidential elections. Moderate leader Mohammad Khatami, who campaigns for improved human rights, freedom of the press, and domestic tolerance, is elected by a large margin against conservative speaker of the parliament Ali Akbar Nateq Nouri. (New York Times, 15 May 1997, 1)

May 31, 1997

State Department informs Congress that the Chinese government sold cruise missiles to Iran; US officials in Moscow also complain privately to Russia that Russian nuclear cooperation with Iran may exceed previously agreed limits. US intelligence reports indicate that Iran is acquiring the "information and know-how" to develop nuclear weapons. (Washington Post, 31 May 1997, A15; 3 July 1997, A7; New York Times, 5 June 1997, 6)

June 1997

Fifty-two American Jewish organizations send a joint letter urging President Clinton not to suspend sanctions against Iran or weaken US containment policy in the wake of Khatami's election. (Journal of Commerce, 18 July 1997, 3A)

July 18, 1997

Italy breaks with its European partners and calls for renewing full relations with Iran. (Journal of Commerce, 18 July 1997, 3A)

July 26, 1997

Clinton Administration announces it will not oppose a $1.6 billion Iran-Turkey pipeline to carry natural gas from Turkmenistan across Iran to Turkey, and eventually to Europe. The Clinton administration suggests that the project does not violate ILSA because it does not constitute an investment in Iran's industry. US Secretary of State Madeleine Albright insists that “there is no attempt here to change policy.” Few foreign observers agree with that characterization. (Washington Post, 27 July 1997, A1; New York Times, 28 July 1997, A2; Journal of Commerce, 31 July 1997, 12A)

August 3, 1997

Mohammad Khatami takes office in Iran. (Washington Post, 4 August 1997, A20)

August 4, 1997

In response to European moves to return envoys to Tehran, Iran indicates that the German ambassador must be the last to return; German Foreign Minister Klaus Kinkel states the European Union will not allow Tehran to dictate the terms of the return of EU ambassadors. The return is delayed until November and both the German and French ambassadors return a week after the other EU ambassadors. (Financial Times, 5 August 1997, 3; Associated Press, 13 November 1997)

August 5, 1997

The Clinton administration announces it will consider approving more pipelines through Iran, with priority to projects that benefit other countries friendly to the United States. (Journal of Commerce, 5 August 1997, 3A)

August 19, 1997

President Clinton issues an executive order that explicitly prohibits re-exports of US goods, technology and services to Iran. (Inside US Trade, online version, 29 August 1997)

September 1997

Israeli Prime Minister Binyamin Netanyahu claims that Iran is receiving aid from Russia to develop ballistic missiles, and presses the United States to impose economic sanctions on Russia under the Iran-Iraq Sanctions Act of 1992. Israeli intelligence reports claim Iran is less than a year away, given continued foreign assistance, from being able to produce long-range missiles. (Washington Post, 25 September 1997, A31)

September 28, 1997

Despite US pressure, Total announces it will proceed, along with Russian firm Gazprom and Petronas of Malaysia, with its proposed $2 billion investment in the Iranian South Pars gas field. The project is one of the largest Iran opened for foreign investment in September 1995. Total has already drawn attention from Washington for a deal to develop the Sirri oil field after Clinton’s March 1995 executive order barring Conoco’s participation. The European Union confirms its continued support for Total’s investment plans. (Financial Times, 9 September 1997, 10; New York Times, 29 September 1997, A3; Journal of Commerce, 30 September 1997, 1A Christian Science Monitor, 1 October 1997, 6; Financial Times, 31 October 1997, 6)

Early October 1997

Clinton administration announces that it will waive sanctions on French firm Total if the European Union agrees to increase enforcement of export controls on dual-use items; sign and implement six additional counter-terrorism conventions; and reduce the number of Iranian diplomats in Europe. (Journal of Commerce, 2 October 1997, 5A, 12A; 7 October 1997, 1A; Washington Post, 4 October 1997, A1)

October 20, 1997

US officials contradict statements made earlier and declare that the proposed Turkmenistan-Turkey pipeline through Iran might be sanctionable under ILSA. Officials say the earlier statement was based on signing a memorandum of understanding, which is not sanctionable, while contracts are. (Journal of Commerce, 21 October 1997, 3A)

November 1997

Iran ratifies Chemical Weapons Convention. (Washington Post, 17 November 1997, A22)

December 14, 1997

At a press conference, President Khatami calls for “thoughtful dialogue” with Americans, whom he refers to as the “great people of the United States.” The US administration responds cautiously, calling it a “potentially positive statement.” (Washington Post, 15 December 1997, A1)

January 7, 1998

In a televised interview with CNN, President Mohammad Khatami expresses regret for the 1979 hostage-taking and calls for increased unofficial exchanges to break down “the bulky wall of mistrust between us and the US administration.” However Khatami rules out official contacts between the American and Iranian governments. The US government states that issues between the countries need be addressed in government-to-government talks. A few days later, Ayatollah Khomeini undercuts Khatami’s words by painting the United States a “great satan,” unworthy of trust. (Washington Post, 8 January 1998, A1; New York Times, 8 April 1998, A6)

January 1998

Undersecretary of State Eizenstat calls sanctions against Total “a live option” and notes that sanctions would also apply to Canada’s Bow Valley Energy for its $212 million project to develop an Iranian oil field. (Journal of Commerce, 8 January 1998, 2A)

February 13, 1998

Despite potential sanctions under ILSA, Royal Dutch/Shell announces that it is still negotiating two deals with Iran, one to export Iranian gas to Pakistan and the other to export Turkmenistan’s gas to Turkey through Iran. (Journal of Commerce, 13 February 1998, 8A)

February 21, 1998

Despite US objections, Russia decides to expand role in building nuclear power plant in Iran. (Washington Post, 22 February 1998, A30)

February 23, 1998

In order to encourage moderate forces in Iran the European Union lifts ban on high-level contacts with Iran, imposed in April 1997 because of Iran’s involvement in the 1992 killing of Kurdish dissidents in Berlin. (Financial Times, 24 February 1998, 2)

April 1998

Secretary of State Madeleine Albright softens US warning against Americans traveling in the Islamic republic. (International Herald Tribune, 3 April 1998, 2)

April 2, 1998

Unless action is taken before Congress reconvenes, Chairman Benjamin Gilman (R-NY) warns the administration that his committee will “explore whether there has been a willful decision not to enforce” ILSA. The administration dismisses the idea of a deadline for finishing its investigation of Total gas deal and Canada’s Bow Valley oil sector deal. (Reuters, 4 April 1998; Journal of Commerce, 7 April 1998, 4A)

April 4, 1998

Tehran’s mayor, a leading reformer and ally of President Khatami, is jailed on corruption charges. Khatami’s government condemns the decision as politically motivated. The event is seen as a proof of the power struggle between reformers and hard-liners. (Washington Post, 7 April 1998, A18; New York Times, 8 April 1998, A6)

April 14, 1998

Under pressure from Congress, the Clinton administration allows Radio Free Iran to begin propaganda broadcasts aimed at Iran. (New York Times, 15 April 1998, A3; Journal of Commerce, 17 April 1998, 3A)

April 15, 1998

In the wake of growing popular unrest, Iranian authorities release Tehran’s mayor. (New York Times, 16 April 1998, 10; Financial Times, 16 April 1998, 14)

April 27, 1998

According to report by the Middle East Economic Survey, Royal Dutch/Shell has decided to sign a framework agreement worth $2.5 billion to develop Iran’s South Pars gas field. (Agence France Presse, 27 April 1998)

April 30, 1998

State Department publishes annual report on terrorism and cites Iran as the world’s number-one state sponsor of such activities. (New York Times, 1 May 1998, A11)

May 9, 1998

Several Senators, including Banking Committee Chairman D’Amato, Majority Leader Lott and Foreign Relations Committee Chairman Jesse Helms, urge president Clinton not to grant a waiver on ILSA sanctions against Total, Petronas and Gazprom, claiming that such a waiver would “reveal the United States as a paper tiger, thus opening the floodgates for further investments.” (Washington Post, 9 May 1998, A20)

May 18, 1998

Clinton administration waives the imposition of sanctions against Total, Gazprom and Petronas for national security reasons under section 9(c) of ILSA (see Legal Notes). The administration justifies its decision, by citing both enhanced cooperation with European countries against terrorism and proliferation of weapons of mass destruction. The administration also announces that 9(c) waivers would be extended in the future to other EU companies investing in Iran if the current level of cooperation by the EU on terrorism and non-proliferation remains the same. Targeted companies, Iran and the EU welcome the move. US companies, still barred from investing in Iran claim that they are at a competitive disadvantage with European companies because of the waiver and press the administration to abandon all sanctions against Iran. (USIS, 18 May 1998; Journal of Commerce, 20 May 1998, 1A; New York Times, 20 May 1998, A13; Washington Post, 20 May 1998, A19; Financial Times, 19 May 1998, 11)

May 20, 1998

Argentina announces it has “absolutely no doubt” that Iran was behind two bombings in Buenos Aires that took the lives of 110 people and injured hundreds more. According to a former Iranian intelligence officer, the former Iranian cultural attaché in Argentina helped plan the bombing of the Israeli embassy in 1992 and the Jewish Community Center in 1994. Argentina expels all Iranian diplomats but one. Iran denies involvement in the incidents and responds by expelling all Argentine diplomats in Tehran but one. (Washington Post, 21 May 1998, A20)

May 22, 1998

Senate votes 90-4 to approve the Iran Missile Proliferation Sanctions Act introduced in House by Representative Benjamin Gilman (R-NY). The bill would deny arms export licenses and eliminate US aid to foreign firms that help Iran develop its missiles, jeopardizing $2.5 billion in American contracts with Russian companies and $140 million in American aid to Russia’s space program. The House of Representatives approves the Act by a vote of 392-22 on 9 June. (International Trade Reporter, 27 May 1998, 933; Journal of Commerce, 28 May 1998, 1A; Inside U.S. Trade, 29 May 1998, 23; USIS, 10 June 1998; USIS, 24 June 1998; International Trade Reporter 15, no. 26, 1152)

June 17, 1998

While demanding that Iran turn away from terrorism and assure the world that it is not developing weapons of mass destruction, Secretary of State Albright praises President Khatami as a man who “deserves respect because he is the choice of the Iranian people.” Praising “signs of change” in Iran, Albright states: “As the wall of mistrust comes down, we can develop with the Islamic republic, when it is ready, a road map leading to normal relations.” Iranian Foreign Minister Kamal Kharrazi welcomes Albright’s comments but states that lifting of US sanctions is a prerequisite for improved relations. (New York Times, 18 June 1998, A12; Washington Post, 19 June 1998, A32)

June 23, 1998

President Clinton vetoes the Iran Missile Proliferation Sanctions Act. Clinton states the bill “mandates the sweeping applications of sanctions according to inflexible and indiscriminate criteria,” and declares that it would have negative impact on US-Russian cooperation on proliferation issues. (USIS, 24 June 1998; International Trade Reporter 15, no. 26, 1152)

July 2, 1998

Iran hopes to attract $8 billion of foreign investments for 43 new projects in its energy sector at a conference with international investors in London. Other estimates put the likely figure at over $5 billion. American oil representatives attend the conference but are barred from bidding for the projects by sanctions. (Financial Times, 2 July 1998, 18; 3 July 1998, 3; Journal of Commerce, 6 July 1998, 9A)

July 1998

To avoid Congressional override of his June 23 veto, President Clinton stops all US exports and aid to and imports from nine Russian institutes and enterprises under investigation by the Russian government for supplying missile technology to Iran. (Journal of Commerce, 17 July 1999, 1A)

July 22, 1998

Iran tests a missile with an 800-mile range, capable of reaching Israel. American officials say the “Shahab 3” missile came from North Korea. (New York Times, 23 July 1998, A1; Journal of Commerce, 24 July 1998, 1A)

July 24, 1998

After an emotional public trial, mayor of Tehran is sentenced to five years in prison for embezzlement. The trial was seen as a show of strength by hard-liners opposing President Khatami’s reforms. (Wall Street Journal, 24 July 1998, A13)

September 22, 1998

In New York to address the UN General Assembly, President Khatami reiterates a call for a “dialogue of civilizations” between Islam and the West. However, he cites US sanctions, freezing of Iranian assets and US efforts to prevent the construction of an international gas pipeline across Iran from Central Asia to Turkey as preventing government to government talks. With regard to terrorism, Khatami denies Iran gives any military aid to Hamas and Hezbollah, but admits “nonmilitary aid.” (New York Times, 23 September 1998, A7; Washington Post, 23 September 1998, A21)

September 24, 1998

Iran officially drops its death threat against Rushdie; Foreign Minister Kamal Kharrazzi states, “The Government of the Islamic Republic of Iran has no intention, nor is it going to take any actions whatsoever to threaten the life of the author of `The Satanic Verses. . .nor will it encourage anyone to do so.’” British Foreign Secretary Robin Cook announces Britain can now restore diplomatic ties with Iran. (New York Times, 25 September 1998, A1, A6)

November 3, 1998

In response to the Czech Republic’s agreement to host a Persian-language Radio Free Europe/Radio Liberty broadcast into Iran, Iran recalls its ambassador from the Czech Republic. A Foreign Ministry spokesman says the Czechs have “backed hostile action by America.” (Washington Post, 4 November 1998, A14)

November 5, 1998

US Treasury Department’s Office of Foreign Assets Control rejects a bid from Optimarket Inc. to swap oil from Kazakhstan with Iran. Ambassador Richard Morningstar, coordinator for Caspian energy policy, indicates that oil swaps would run counter to US policy of preventing Iran from become a major route for oil shipments to western markets. Mobil has a similar oil-swap application pending. (Reuters, 5 November 1998)

November 9, 1998

Despite US pressure, Turkey begins construction of pipeline to carry gas from Iran and Turkmenistan to Ankara. Turkey claims it is not violating ILSA because Iran is funding the construction of pipe on the its side. (Journal of Commerce, 10 November 1998, 17A; 12 November 1998, 3A; Washington Post, 13 December 1998, A40)

November 25, 1998

Russia signs an $800 million deal to finish building the Bushehr nuclear power plant in Iran; announces it may bid on three more nuclear reactors for $3 billion. Russia assured US that agreement concerns peaceful nuclear cooperation only. (International Herald Tribune, 26 November 1998, 12; Financial Times, 26 November 1998, 2)

December 4, 1998

Argentina charges an Iranian woman, Nahrim Mokhtari, in relation to the 1992 attack on the Israeli embassy and the 1994 attack on a Jewish community center. (International Herald Tribune, 5–6 December 1998, 1)

December 7, 1998

President Clinton takes Iran off the list of drug-source and transit nations due to its successful campaign to destroy opium plants. The move has no immediate effect because Iran, listed as a sponsor of international terrorism, receives no economic or military aid from the US. Senior officials state that US will continue to vote against loans to Iran by multilateral lending institutions. (Financial Times, 8 December 1998, 4; Washington Post, 8 December 1998, A23)

December 9, 1998

Royal Dutch/Shell announces it will not build a gas pipeline in Iran to carry gas from Turkmenistan to Turkey. According to Shell officials, the decision was a result of disagreements with Iran and not US sanctions under ILSA. (Journal of Commerce, 11 December 1998, 1A)

December 14, 1998

The Niki Trading Company formally asks the Treasury Department for a waiver of sanctions to allow the sale of about $500 million worth of farm products to Iran. Ten agricultural trade associations as well as thirty-two congressmen write letters to President Clinton endorsing the waiver. (Journal of Commerce, 21 December 1998, 1A; Washington Post, 19 January 1999, A15)

January 29, 1999

Australia announces it is resuming high-level contacts with Iran in hopes of expanding trade. (Financial Times, 30–31 January 1999, 3)

Mid February 1999

Iran’s Supreme Economic Council approves a deal with the UK’s Premier Oil and Canada’s Bow Valley to develop an offshore oil field. US State Department declares it will apply ILSA against the companies assuming the $270 million deal is finalized. (Financial Times, 19 February 1999, 5; Wall Street Journal, 10 March 1999, A19)

February 23, 1999

Clinton Administration officially imposes import sanctions on 10 Russian entities for giving assistance to Iran in their nuclear and missile programs. (Journal of Commerce, 24 February 1999, 3A)

March 1, 1999

France’s Elf Aquitaine and Italy’s ENI SpA sign a deal worth nearly $1 billion with Iran to develop the Doroud oil field. US State Department it will review the sale under ILSA. (Financial Times, 2 March 1999, 1; Journal of Commerce, 4 March 1999, 7A)

March 9, 1999

Iranian President Mohammad Khatami arrives in Italy for the first visit in the West by an Iranian leader since 1979. (New York Times, 10 March 1999, A3)

March 15, 1999

Russia’s Atomic Energy Minister reportedly offers to scale back nuclear cooperation with Iran if the US drops sanctions against two leading nuclear research institutes in Russia. (New York Times, 17 March 1999, A12)

April 28, 1999

President Clinton announces that the US will exempt exports of food and medicine from future sanctions imposed by the executive branch. The new rules also apply to food and medicine sales to Iran, Libya, and Sudan, which will be permitted on a case-by-case basis. Specific licensing rules will be drawn up for each country and there will be no US government, funding, financing or guarantees for the sales. (USIS, 28 April 1999; Journal of Commerce, 4 May 1999, 8A)

April 28, 1999

Clinton administration informs Mobil it may not participate in oil swapping arrangement involving Caspian Sea oil and Iran. (Washington Post, 29 April 1999, A23)

May 18, 1999

Britain and Iran restore full diplomatic ties. (International Herald Tribune, 19 May 1999, 5)

June 1999

White House issues a statement of concern regarding the arrest of 13 Iranian-Jews in Iran on espionage charges; denies that individuals were involved with US government. World Bank officials state that talks about resuming loans to Iran are stalled due to US objection after the arrests. Two pending projects are put on hold. (USIS, 8 June 1999; Washington Post, 23 June 1999, A18)

July 1999

Week-long pro-democracy demonstrations in Tehran are suppressed by forces loyal to conservative elements in Iranian government, leading to worst social unrest in Iran since 1979. (New York Times, 14 July 1999, A8; Washington Post, 15 July 1999, A19; Financial Times, 5 August 1999, 5)

August 1999

President Clinton sends a secret letter to President Khatami requesting Iran’s assistance in the investigation of the 1996 bombing of the US military installation in Dhahran, Saudi Arabia. Clinton is holding out the prospect of better relations between the two countries in exchange for Iran’s cooperation. Iran denies any involvement and rejects Clinton’s request. (Washington Post, 29 September 1999, A2; 7 October 1999, A30)

September 1999

According to US Department of Agriculture Iran purchased 150,000 metric tons of American corn over last several weeks. (Wall Street Journal, 20 September 1999, B11G)

October 27–30, 1999

During three day state visit in France, Iranian President Khatami stresses Iran’s need for economic assistance to expand democracy and accountable government. He calls on France’s trade insurance agency to increase export guarantees to Iran. (Financial Times, 27 October 1999, 7; 30/31 October 1999, 3)

November 14, 1999

Royal Dutch/Shell signs an $800 million agreement with Iran for the development of two off-shore oil fields. Shell is the first company with significant investments in the US to undertake such a deal with Iran. (Financial Times, 15 November 1999, 1; Wall Street Journal, 16 November 1999, A21)

November 22, 1999

Iran rejects US proposal for consular visits. (New York Times, 24 November 1999, A8)

November 29, 1999

Britain announces an aid package totaling $3 million to assist Iran fight against drug traffic. (Financial Times, 29 November 1999, 8)

Early December 1999

US officials say that intelligence reports suggest that Iran has recently increased aid to terrorist groups opposing the Middle East peace process. At the same time, for safety reasons, Clinton administration grants license to Boeing to provide Iran with parts for its airplanes. (Washington Post, 4 December 1999, A1, A16)

February 17, 2000

Secretary of State Albright announces that the administration is looking into ways to help victims of state-sponsored terrorism collect court-ordered damages by identifying Iranian assets that could be used. Several former hostages have filed lawsuits against Iran under amendments to the Foreign Sovereign Immunities Act passed in 1996. (Washington Post, 17 February 2000, A6)

February 18, 2000

With a voter turn out of more than 80 percent, reformists win two-thirds of the seats in parliamentary elections in Iran. US State Department spokesman James Rubin says the results show that Iranian people want “engagement with the rest of the world” and “greater freedom within Iran.” (New York Times, 21 February 2000, A8; Financial Times, 22 February 2000, 8)

March 15, 2000

Ending a two-year dispute with Congress that began after his June 1998 veto, President Clinton signs the Iran Nonproliferation Act of 2000 into law. Act requires the president to send report to Congress identifying countries and entities assisting Iran with its weapons programs and gives the president the authority to impose sanctions on these countries but does not make sanctions mandatory. The act also bar the US from making “extraordinary” payments to the Russian Space Agency to build the International Space Station or any other organization of the Russian government until the president determines that Russia is actively opposing proliferation in Iran. The president may waive sanctions for national security reasons. (USIS, 15 March 2000; International Trade Reporter, 23 March 2000, 498; Public Law 106–178; Arms Control Today 30, no. 3, 1 April 2000, 26)

March 17, 2000

In a speech before the American Iranian Council, Secretary of State Albright announces that US will lift ban on Iranian non-oil exports such as carpets, caviar, pistachios and dried fruit. Expressing regret for past US involvement in Iran, Albright states that US will increase efforts to reach a settlement to all legal and financial claims between the two countries and to reduce barrier to cultural exchanges. US sanctions barring American investment in Iran’s oil sector, however, remain in place. Iranian officials welcome the US initiative but state that steps taken are not sufficient to begin official talks with Washington. (Washington Post, 17 March 2000, A20; 18 March 2000, A14; New York Times, 18 March 2000, A1, A5)

Iranian Foreign Minister Kamal Kharrazi expresses “strong indignation” regarding President Bush’s inclusion of Iran in the axis of evil and warns that US support for Israel could undermine Iranian support in anti-terrorist efforts. (Washington Post, 6 February 2002, A12)

Under the Iran Nonproliferation Act of 2000, the US imposes sanctions on 13 foreign companies, five from China, two each from Macedonia and Russia, and one each from Belarus, North Korea, Taiwan and UAE. (Financial Times, 3 April 2004, 2; Federal Register, 7 April 2004)