Iran is pursuing a public nuclear policy, which will lead it into regional power status. The Persian Gulf is a vital region for its natural resources that America and its trading powers require to maintain their economies. A disruption of Persian Gulf petroleum production and export will have a global economic impact. The United States has provided security in the Persian Gulf in the past. In order to avoid a conflict with a burgeoning nuclear power in this vital region, the United States must engage Iran immediately and if required, unilaterally. Iran is a complex nation with aspirations to become a respected power in the region. Its threats directed at Israel draw on the popular Muslim target in order to deflect internal criticism and unify Arab Muslim hatred towards the Jewish state. Iran's leaders employ scare tactics on their own population in order to consolidate power against foreign threats. Iran's penchant for nuclear power and eventually a nuclear weapon can bring this bustling Persian Gulf state a greater stake in the geopolitical game. Iran is a proud state with a desire to regain its ancient glory and become a regional hegemon again, thus gaining international respect. Iran is also a pragmatic power on the rise. It is pursuing greater economic and diplomatic relations with foreign states and corporations; this follows a long period of extreme isolation and tragic warfare. Iranian leaders, including moderates and conservatives, use policies to increase the investment within and the exportation of natural resources, thus creating the co-dependant relationship of oil producer and user. Iran is a rational actor that uses some uncommon methods of foreign policy and communicating its policy objectives. There are five recommended actions along the lines of the elements of national power within a United States engagement policy towards an emerging Iranian hegemon. First, the United States should normalize diplomatic relations with Iran in order to dialogue directly. Second, American information operations should accentuate the positive steps made by Iran. American messages directed towards the Iranian people should focus on cooperation in collective security interests of both nations. Third, the United States must remain and stabilize Iraq in order that a fully functioning Iraq can balance Iran's power in the region. Beyond the stabilization of Iraq, America must maintain a military presence in the Persian Gulf in order to demonstrate commitment to security and react to threats in the region. Fourth, America should initiate economic revival with Iran by incrementally decreasing sanctions against American business in Iran and lifting American boycott of Iranian products sold to the United States. This policy element should be gradually implemented with improving relations based on the reactions of Iran; however the initiative lies with the United States. Fifth, the United States must work with coalition partners multilaterally to maintain pressure on Iran to abandon its nuclear program through international organizations and direct dialog. An American engagement policy must be a synchronized effort employing all the elements of power. America should not lead with its military power; however its military presence in the Persian Gulf does demonstrate American resolve for security and stability. The United States must engage Iran diplomatically in order to reduce tension, and modify sanctions in order to draw Iran into an economic relationship that comes with the prosperity that has accompanied globalization. America's message to the people of Iran must be engaging rather than threatening in order to facilitate a reciprocal response from Iranian leaders. The resolution of a potential crisis, between Iran bent on achieving nuclear power and America bent on keeping Iran isolated, is more about post modern American leadership and values.

ADA450836 Approved for public release; Distribution is unlimited. The opinions and conclusions expressed herein are those of the student-authors and do not necessarily represent the views of the U.S. Army Command and General Staff College or any other governmental agency. (References to these studies should include the foregoing statement.)