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.
Politics of Iran
The Supreme Leader of Iran is the head of state and highest ranking political and religious authority in the Islamic Republic of Iran (above the President). The armed forces, judicial system, state television, and other key governmental organizations are under the control of the Supreme Leader. There have been only two Supreme Leaders since the founding of the Islamic Republic, and the current leader (Ali Khamenei), has been in power since 1989. His powers extend to issuing decrees and making final decisions on the economy, environment, foreign policy, education, national planning of population growth, 
the amount of transparency in elections in Iran, and who is to be fired and reinstated in the Presidential cabinet.