"The Bush Administration is pursuing several approaches to attempt to contain the potential threat posed by Iran, but the U.S. emphasis is now on multilateral economic sanctions on Iran. Iran has not complied with repeated U.N. Security Council deadlines since August 2006 to cease uranium enrichment. That demand is encapsulated in two U.N. resolutions (1737 and 1747) that ban trade with and freeze the assets of Iran's nuclear and related entities and personalities, prevent Iran from transferring arms outside Iran, and require reporting on international travel by named Iranians. With Iran still refusing to comply, further steps are under discussion at the U.N. Security Council. Separate U.S. efforts, showing some success, have included trying to persuade European governments to curb trade, investment, and credits to Iran; and pressuring foreign banks not to do business with Iran. To strengthen its diplomacy, the Administration has added components to efforts to contain Iran, including a naval buildup in the Persian Gulf; arrests of Iranian agents in Iraq. The Administration strongly denies it is planning on military action against Iran, but has refused to rule it out."
CRS Report for Congress, RL32048