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.
Nuclear program of Iran
In early August 2005, after the June election of Mahmoud Ahmadinejad as Iran's President, Iran removed seals on its uranium enrichment equipment in Isfahan, which UK officials termed a "breach of the Paris Agreement" though a case can be made that the EU violated the terms of the Paris Agreement by demanding that Iran abandon nuclear enrichment. Several days later, the EU-3 offered Iran a package in return for permanent cessation of enrichment. Reportedly, it included benefits in the political, trade and nuclear fields, as well as long-term supplies of nuclear materials and assurances of non-aggression by the EU (but not the US). Mohammad Saeedi, the deputy head of Iran's atomic energy organization rejected the offer, terming it "very insulting and humiliating" and other independent analysts characterized the EU offer as an "empty box". Iran's announcement that it would resume enrichment preceded the election of Iranian President Ahmadinejad by several months. The delay in restarting the program was to allow the IAEA to re-install monitoring equipment. The actual resumption of the program coincided with the election of President Mahmoud Ahmedinejad, and the appointment of Ali Larijani as the chief Iranian nuclear negotiator.