First, the European offer to open up technology and trade, including the peaceful use of nuclear technology, was disproportionate to Iran’s fundamental fear of regime change on the one hand, and its regional hegemonic aspirations and quest for global prestige on the other. Second, the disastrous US-led war in Iraq has led Iran’s leaders to conclude that the leading Western power has been weakened to the point that it is dependent on Iran’s goodwill, and that high oil prices have made the West all the more wary of a serious confrontation.