Iran is a major proliferator. It plays an indirect role in the Israel-Palestinian conflict. It has carried out direct terrorist activities in the past, and it tolerates and supports terrorist movements today. At the same time, Iran offers opportunities as well as a threat. Political change is taking place, some forms of informal dialogue have been possible, Iran has moderated some of its actions, and the US has been more able to work out at least a partial modus vivendi in dealing with some aspects of the problems posed by Afghanistan and Iraq.