Foreign policy of the Mahmoud Ahmadinejad administration
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.
2009 Iranian presidential election protests
In 2005, Tehran Mayor Mahmoud Ahmadinejad was elected to the presidency, defeating now reformist Ali-Akbar Rafsanjani, placing the conservatives in charge of the government once more. Ahmadinejad would focus his presidency on confronting Israel. His speeches gained international infamy, which usually called for the destruction of Israel and claimed that the Holocaust was fabricated. The funding of anti-Israeli groups went up exponentially, particularly towards Hamas and Hezbollah, which have been labeled as Terrorist groups by the United States. Despite Iran's huge oil and gas reserves, those sectors have been relatively neglected in favor of a nuclear energy program that has cost billions of dollars and has been condemned by Israel and the United States, who claim that the program is a cover up for a much larger nuclear weapons program. As a result, the United Nations has placed sanctions on the Iranian government, which has had a heavy impact on the economy, reducing the value of the rial from a low of 8,000 to the dollar in 2005 to 10,000 to the dollar in 2009.