Presidency of Mahmoud Ahmadinejad
While the U.S has linked its support for a Palestinian state to acceptance of Israel's "right to exist," Iran's President Mahmoud Ahmadinejad has retorted that Israel should be moved to Europe instead, reiterating Muammar al-Gaddafi's 1990 statement. The U.S. has sent signals to Iran that its posturing against Israel's right to exist is unacceptable in their opinion, leading to increased speculation of a U.S. led attack on Iran's nuclear facilities. Even though Iran has denied involvement in Iraq, then-President Bush warned of "consequences," sending a clear message to Iran that the U.S may take military action against it. The Bush administration considered Iran to be the world's leading state supporter of terrorism. Iran has been on the U.S. list of state sponsors of international terrorism since 1984, a claim that Iran and Ahmadinejad have denied.
Monarchism in Iran
Under increasing international pressure, particularly from President Jimmy Carter of the United States, the Shah pushed forward major democratic reforms in the late 1970s, designed to gradually restore the constitutional monarchy as it had originally been. However, several uprisings in 1978 and 1979 culminated in the Shah, who had been diagnosed with terminal cancer and had kept the fact secret, to leave the country with his family to seek treatment overseas. Within several days the Shah's government had effectively collapsed and the Second Revolution had begun. The new provisional revolutionary government officially abolished the monarchy and declared Iran to be a republic. The following year, in 1980, the Islamic Republic of Iran was established under the Supreme Leadership of Ruhollah Khomeini.