The tensions between Western countries and Iran are based on three major issues: (1) Iran's Nuclear Ambitions, (2) Iran's Numerous Human Rights Violations, (3) Particular Political Grievances Between Western Countries and Iran.

(1) Iran's Nuclear Ambitions
While Iran has the right to have a program to produce nuclear energy in accordance with IAEA guidelines and oversight. However, Iran has repeatedly prevented IAEA inspectors from visiting sites where nuclear weapons are rumored to be in production. As a result, the United States and most European states are very distrustful that Iran is engaging in a peaceful nuclear energy production program and believe that Iran intends to create nuclear weapons. The Western States also categorically opposes Iran having a nuclear weapon given that Iran has expressed militancy towards and supported/founded militant groups that act throughout the Middle East. If Iran embraces a more moderate regime and makes clear that they are willing to work within IAEA parameters, Iran should not have a problem with its nuclear program.

(2) Iran's Numerous Human Rights Violations
Iran is well-known for being a country which violates fundamental human freedoms and is quite proud for doing so. For example, Iran is a prominent signatory to the Cairo Declaration of Human Rights which is a document that repudiates the United Nations Declaration of Human Rights and asserts that men are superior to women, that Muslims are superior to Non-Muslims, and that Freedom of Speech, Press, and Assembly should be curtailed in cases where the religion of Islam (broadly interpreted) is concerned. Iran's government persecutes minority religions, such as Sunni Islam, Baha'i, Yarsan, Christianity, Judaism, and Zoroastrianism. Political protests, such as the Green Revolution of 2009 have been met with violence from the Basij (Iran's military) and political expression contrary to the regime's interest has resulted in suppression and jail terms. Political parties with views contrary to the ruling regime are also repressed. Women's Rights, in terms of freedom of dress and interaction with men are also limited. Additionally, the Supreme Council of Ayatollahs (the most powerful branch of the Iranian government) is effectively forbidden for women since women are forbidden by Shiite Islam from becoming Ayatollahs.

(3) Particular Political Grievances Between Western Countries and Iran.
There are several grievances between Iran and Western countries, particularly Iran and the United States. Some of those grievances include:

1. The Iranian Hostage Crisis in 1979
2. Iran's financial support of Islamist groups that attacked US and French forces in the 1983 Beirut Barracks Bombing
3. Iran's continual monetary and political support to the end of eliminating Israel
4. Iran's antagonism towards the Arab Gulf countries
5. Iran's support for Hezbollah, Hamas, and Palestinian Jihad -- all recognized terrorist organizations
6. Iran's use of the al-Quds Expeditionary forces to attack Coalition Troops during the Iraq War.

Western countries, especially the United States, have been keen to impose embargoes on Iran in attempt to curb that nation's policies that are not in accord with Western ideals and values. The tensions between Western countries and Iran are based on three major issues: (1) Iran's Nuclear Ambitions, (2) Iran's Numerous Human Rights Violations, (3) Particular Political Grievances Between Western Countries and Iran.

(1) Iran's Nuclear Ambitions
While Iran has the right to have a program to produce nuclear energy in accordance with IAEA guidelines and oversight. However, Iran has repeatedly prevented IAEA inspectors from visiting sites where nuclear weapons are rumored to be in production. As a result, the United States and most European states are very distrustful that Iran is engaging in a peaceful nuclear energy production program and believe that Iran intends to create nuclear weapons. The Western States also categorically opposes Iran having a nuclear weapon given that Iran has expressed militancy towards and supported/founded militant groups that act throughout the Middle East. If Iran embraces a more moderate regime and makes clear that they are willing to work within IAEA parameters, Iran should not have a problem with its nuclear program.

(2) Iran's Numerous Human Rights Violations
Iran is well-known for being a country which violates fundamental human freedoms and is quite proud for doing so. For example, Iran is a prominent signatory to the Cairo Declaration of Human Rights which is a document that repudiates the United Nations Declaration of Human Rights and asserts that men are superior to women, that Muslims are superior to Non-Muslims, and that Freedom of Speech, Press, and Assembly should be curtailed in cases where the religion of Islam (broadly interpreted) is concerned. Iran's government persecutes minority religions, such as Sunni Islam, Baha'i, Yarsan, Christianity, Judaism, and Zoroastrianism. Political protests, such as the Green Revolution of 2009 have been met with violence from the Basij (Iran's military) and political expression contrary to the regime's interest has resulted in suppression and jail terms. Political parties with views contrary to the ruling regime are also repressed. Women's Rights, in terms of freedom of dress and interaction with men are also limited. Additionally, the Supreme Council of Ayatollahs (the most powerful branch of the Iranian government) is effectively forbidden for women since women are forbidden by Shiite Islam from becoming Ayatollahs.

(3) Particular Political Grievances Between Western Countries and Iran.
There are several grievances between Iran and Western countries, particularly Iran and the United States. Some of those grievances include:

1. The Iranian Hostage Crisis in 1979
2. Iran's financial support of Islamist groups that attacked US and French forces in the 1983 Beirut Barracks Bombing
3. Iran's continual monetary and political support to the end of eliminating Israel
4. Iran's antagonism towards the Arab Gulf countries
5. Iran's support for Hezbollah, Hamas, and Palestinian Jihad -- all recognized terrorist organizations
6. Iran's use of the al-Quds Expeditionary forces to attack Coalition Troops during the Iraq War.

The question fails to accurately balance the reasons for the US-imposed sanctions on Iran. Iran's policy vis-a-vis Israel is only one of a number of issues that have led to these sanctions. There are three major reasons that the US has pursued sanctions against Iran: (1) Iran's Nuclear Ambitions, (2) Iran's Numerous Human Rights Violations, (3) Particular Political Grievances Between Western Countries and Iran, of which Israel is only one of several.

(1) Iran's Nuclear Ambitions
While Iran has the right to have a program to produce nuclear energy in accordance with IAEA guidelines and oversight. However, Iran has repeatedly prevented IAEA inspectors from visiting sites where nuclear weapons are rumored to be in production. As a result, the United States and most European states are very distrustful that Iran is engaging in a peaceful nuclear energy production program and believe that Iran intends to create nuclear weapons. The United States also categorically opposes Iran having a nuclear weapon given that Iran has expressed militancy towards and supported/founded militant groups that act throughout the Middle East. If Iran embraces a more moderate regime and makes clear that they are willing to work within IAEA parameters, Iran should not have a problem with its nuclear program.

(2) Iran's Numerous Human Rights Violations
Iran is well-known for being a country which violates fundamental human freedoms and is quite proud for doing so. For example, Iran is a prominent signatory to the Cairo Declaration of Human Rights which is a document that repudiates the United Nations Declaration of Human Rights and asserts that men are superior to women, that Muslims are superior to Non-Muslims, and that Freedom of Speech, Press, and Assembly should be curtailed in cases where the religion of Islam (broadly interpreted) is concerned. Iran's government persecutes minority religions, such as Sunni Islam, Baha'i, Yarsan, Christianity, Judaism, and Zoroastrianism. Political protests, such as the Green Revolution of 2009 have been met with violence from the Basij (Iran's military) and political expression contrary to the regime's interest has resulted in suppression and jail terms. Political parties with views contrary to the ruling regime are also repressed. Women's Rights, in terms of freedom of dress and interaction with men are also limited. Additionally, the Supreme Council of Ayatollahs (the most powerful branch of the Iranian government) is effectively forbidden for women since women are forbidden by Shiite Islam from becoming Ayatollahs.

(3) Particular Political Grievances Between Western Countries and Iran.
There are several grievances between Iran and Western countries, particularly Iran and the United States. Some of those grievances include:

1. The Iranian Hostage Crisis in 1979
2. Iran's financial support of Islamist groups that attacked US and French forces in the 1983 Beirut Barracks Bombing
3. Iran's continual monetary and political support to the end of eliminating Israel
4. Iran's antagonism towards the Arab Gulf countries, which are also US allies
   
5. Iran's support for Hezbollah, Hamas, and Palestinian Jihad -- all recognized terrorist organizations by the United States
   
6. Iran's use of the al-Quds Expeditionary forces to attack Coalition Troops (killing a number of Americans, especially with IEDs) during the Iraq War.

There are a total of 14 great ayatollahs

the most known khomeini

• Ruhollah Khomeini, who leaded the Iranian revolution
• Hoessein-Ali Montazeri, one of the biggest dirtlayers of the Iranian revolution, from 1989 he was an opponent of ayatollah Khomeini and he did'NT agree the politics in Iran.
• Ali Khamenei, he is/was the spiritual leader of Iran, he voted for the conservatives Ali al-Sistani, de biggest sjiitsche spiritual men from Irak
• Mohammed Hussein Fadlallah, he was from libanon

Israel has the highest ratio of defense spending to GDP and as a percentage of the budget of all developed countries. The Israel Defense Forces is the sole military wing of the Israeli security forces, and is headed by its Chief of General Staff, the Ramatkal, subordinate to the Minister of Defense. The IDF consist of the army, air force and navy. It was founded during the 1948 Arab-Israeli War by consolidating paramilitary organizations-chiefly the Haganah-that preceded the establishment of the state. The IDF also draws upon the resources of the Military Intelligence Directorate (Aman), which works with the Mossad and Shabak. The Israel Defense Forces have been involved in several major wars and border conflicts in its short history, making it one of the most battle-trained armed forces in the world.

Most Israelis are drafted into the military at the age of 18. Men serve three years and women two to three years. Following mandatory service, Israeli men join the reserve forces and usually do up to several weeks of reserve duty every year until their forties. Most women are exempt from reserve duty. Arab citizens of Israel (except the Druze) and those engaged in full-time religious studies are exempt from military service, although the exemption of yeshiva students has been a source of contention in Israeli society for many years. An alternative for those who receive exemptions on various grounds is Sherut Leumi, or national service, which involves a program of service in hospitals, schools and other social welfare frameworks. As a result of its conscription program, the IDF maintains approximately 176,500 active troops and an additional 445,000 reservists.

The nation's military relies heavily on high-tech weapons systems designed and manufactured in Israel as well as some foreign imports. Since 1967, the United States has been a particularly notable foreign contributor of military aid to Israel: the US is expected to provide the country with $3.15 billion per year from 2013-2018. The Arrow missile is one of the world's few operational anti-ballistic missile systems.

Since the Yom Kippur War, Israel has developed a network of reconnaissance satellites. The success of the Ofeq program has made Israel one of seven countries capable of launching such satellites. Since its establishment, Israel has spent a significant portion of its gross domestic product on defense. In 1984, for example, the country spent 24% of its GDP on defense. Today, that figure has dropped to 7.3%.

Israel is widely believed to possess nuclear weapons as well as chemical and biological weapons of mass destruction. Israel has not signed the Treaty on the Non-Proliferation of Nuclear Weapons and maintains a policy of deliberate ambiguity toward its nuclear capabilities. Since the Gulf War in 1991, when Israel was attacked by Iraqi Scud missiles, all homes in Israel are required to have a reinforced security room impermeable to chemical and biological substances.

The IDF has also been deployed on humanitarian missions, usually involving rescue workers and medical personnel, along with relief workers and body identifiers from ZAKA and the Israel Police. After the 2010 Haiti earthquake, a rescue team was dispatched to Haiti, which consisted of 40 doctors, 20 nurses and rescue workers, and two rescue planes loaded with medical equipment and a field hospital with X-ray equipment, intensive care units, and operating rooms. Other recent recipients of aid include Japan (a medical team after the 2011 tsunami), Congo 2008, Sri Lanka 2005 (tsunami), India and El Salvador 2001 (earthquakes), Ethiopia 2000, Turkey 1998 (earthquake), Kosovo 1999 (refugees) and Rwanda 1994 (refugees).

Israel is consistently rated very low in the Global Peace Index, ranking 145th out of 153 nations for peacefulness in 2011.

Israel is considered one of the most advanced countries in Southwest Asia in economic and industrial development. In 2010, it joined the OECD. The country is ranked 3rd in the region on the World Bank's Ease of Doing Business Index as well as in the World Economic Forum's Global Competitiveness Report. It has the second-largest number of startup companies in the world (after the United States)and the largest number of NASDAQ-listed companies outside North America.

In 2010, Israel ranked 17th among of the world's most economically developed nations, according to IMD's World Competitiveness Yearbook. The Israeli economy was ranked first as the world's most durable economy in the face of crises, and was also ranked first in the rate of research and development center investments.

The Bank of Israel was ranked first among central banks for its efficient functioning, up from the 8th place in 2009. Israel was also ranked as the worldwide leader in its supply of skilled manpower. The Bank of Israel holds $78 billion of foreign-exchange reserves.

Despite limited natural resources, intensive development of the agricultural and industrial sectors over the past decades has made Israel largely self-sufficient in food production, apart from grains and beef. Other major imports to Israel, totaling $47.8 billion in 2006, include fossil fuels, raw materials, and military equipment. Leading exports include electronics, software, computerized systems, communications technology, medical equipment, pharmaceuticals, fruits, chemicals, military technology, and cut diamonds; in 2006, Israeli exports reached $42.86 billion, and by 2010 they had reached $80.5 billion a year.

Israel is a leading country in the development of solar energy. Israel is a global leader in water conservation and geothermal energy,[ and its development of cutting-edge technologies in software, communications and the life sciences have evoked comparisons with Silicon Valley. According to the OECD, Israel is also ranked 1st in the world in expenditure on Research and Development (R&D) as a percentage of GDP. Intel and Microsoft built their first overseas research and development centers in Israel, and other high-tech multi-national corporations, such as IBM, Cisco Systems, and Motorola, have opened facilities in the country. In July 2007, U.S. billionaire Warren Buffett's Berkshire Hathaway bought an Israeli company Iscar, its first non-U.S. acquisition, for $4 billion. Since the 1970s, Israel has received military aid from the United States, as well as economic assistance in the form of loan guarantees, which now account for roughly half of Israel's external debt. Israel has one of the lowest external debts in the developed world, and is a net lender in terms of net external debt (the total value of assets vs. liabilities in debt instruments owed abroad), which as of 2011 stood at a surplus of US$58.7 billion.

Days of working time in Israel are Sunday through Thursday (for 5 a days 'week'), or Friday (for 6 a days 'week'). In observance of Shabbat, in places where Friday is a work day and the majority of population is Jewish, Friday is a "short day", usually lasting till 14:00 in the winter, or 16:00 in the summer. Several proposals have been raised to adjust the work week with the majority of the world, and make Sunday a non-working day, while extending working time of other days, and/or replacing Friday with Sunday as a work day .

Israel's eight public universities are subsidized by the state. The Hebrew University of Jerusalem, Israel's oldest university, houses the Jewish National and University Library, the world's largest repository of books on Jewish subjects. The Hebrew University is consistently ranked among world's 100 top universities by the prestigious ARWU academic ranking. Other major universities in the country include the Technion, the Weizmann Institute of Science, Tel Aviv University (TAU), Bar-Ilan University, the University of Haifa, The Open University and Ben-Gurion University of the Negev. Israel's seven research universities (excluding the Open University) are consistently ranked among top 500 in the world. Israel has produced six Nobel Prize-winning scientists since 2002 and publishes among the most scientific papers per capita of any country in the world.

Israel has embraced solar energy, its engineers are on the cutting edge of solar energy technology and its solar companies work on projects around the world. Over 90% of Israeli homes use solar energy for hot water, the highest per capita in the world. According to government figures, the country saves 8% of its electricity consumption per year because of its solar energy use in heating. The high annual incident solar irradiance at its geographic latitude creates ideal conditions for what is an internationally renowned solar research and development industry in the Negev Desert.

A horizontal parabolic dish, with a triangular structure on its top. Around it is a flat sandy area, with desert in the background. It's a sunny day, with a few white clouds in the blue skies.

The world's largest solar parabolic dish at the Ben-Gurion National Solar Energy Center.

Israel's most recent Nobel laureate: Dan Shechtman won the 2011 Nobel Prize in Chemistry.

Israel is one of the world's technological leaders in water technology. In 2011, its water technology industry was worth around $2 billion a year with annual exports of products and services in the tens of millions of dollars. The ongoing shortage of water in the country has spurred innovation in water conservation techniques, and a substantial agricultural modernisation, drip irrigation, was invented in Israel. Israel is also at the technological forefront of desalination and water recycling. The Ashkelon seawater reverse osmosis (SWRO) plant, the largest in the world, was voted 'Desalination Plant of the Year' in the Global Water Awards in 2006. Israel hosts an annual Water Technology Exhibition and Conference (WaTec) that attracts thousands of people from across the world. By the end of 2013, 85 percent of the country's water consumption will be from reverse osmosis. As a result of innovations in reverse osmosis technology, Israel is set to become a net exporter of water in the coming years.

Israel has led the world in stem-cell research papers per capita since 2000. In addition, Israeli universities are among 100 top world universities in mathematics (Hebrew University, TAU and Technion), physics (TAU, Hebrew University and Weizmann Institute of Science), chemistry (Technion and Weizmann Institute of Science), computer science (Weizmann Institute of Science, Technion, Hebrew University, TAU and BIU) and economics (Hebrew University and TAU).

Israel has a modern electric car infrastructure involving a countrywide network of recharging stations to facilitate the charging and exchange of car batteries. It is thought that this will lower Israel's oil dependency and lower the fuel costs of hundreds of Israel's motorists that use cars powered only by electric batteries. The Israeli model is being studied by several countries and being implemented in Denmark and Australia.

In 2009 Israel was ranked 2nd among 20 top countries in space sciences by Thomson Reuters agency. Since 1988 Israel Aerospace Industries have indigenously designed and built at least 13 commercial, research and spy satellites. Most were launched to orbit from Israeli air force base "Palmachim" by the Shavit space launch vehicle. Some of Israel's satellites are ranked among the world's most advanced space systems. In 2003, Ilan Ramon became Israel's first astronaut, serving as payload specialist of STS-107, the fatal mission of the Space Shuttle Columbia.

Iran's foreign relations are based on two strategic principles: eliminating outside influences in the region and pursuing extensive diplomatic contacts with developing and non-aligned countries. Iran maintains diplomatic relations with almost every member of the United Nations, except for Israel, which Iran does not recognize, and the United States since the Iranian Revolution. Since 2005, Iran's nuclear program has become the subject of contention with the Western world due to suspicions that Iran could divert the civilian nuclear technology to a weapons program. This has led the UN Security Council to impose sanctions against Iran on select companies linked to this program, thus furthering its economic isolation on the international scene. The US Director of National Intelligence said in February 2009 that Iran would not realistically be able to a get a nuclear weapon until 2013, if it chose to develop one.

One of Iran's three SSK Kilo class submarines

The Islamic Republic of Iran has two types of armed forces: the regular forces Islamic Republic of Iran Army, Islamic Republic of Iran Air Force, Islamic Republic of Iran Navy and the Islamic Revolutionary Guards Corps (IRGC), totaling about 545,000 active troops. Iran also has around 350,000 Reserve Force totaling around 900,000 trained troops. Iran has a paramilitary, volunteer militia force within the IRGC, called the Basij, which includes about 90,000 full-time, active-duty uniformed members. Up to 11 million men and women are members of the Basij who could potentially be called up for service; GlobalSecurity.org estimates Iran could mobilize "up to one million men". This would be among the largest troop mobilizations in the world. In 2007, Iran's military spending represented 2.6% of the GDP or $102 per capita, the lowest figure of the Persian Gulf nations. Iran's military doctrine is based on deterrence.

Since the Iranian Revolution, to overcome foreign embargo, Iran has developed its own military industry, produced its own tanks, armored personnel carriers, guided missiles, submarines, military vessels, guided missile destroyer, radar systems, helicopters and fighter planes. In recent years, official announcements have highlighted the development of weapons such as the Hoot, Kowsar, Zelzal, Fateh-110, Shahab-3 and Sajjil missiles, and a variety of unmanned aerial vehicles (UAVs). The Fajr-3 (MIRV) is currently Iran's most advanced ballistic missile, it is a liquid fuel missile with an undisclosed range which was developed and produced domestically. Iran has allowed the Taliban to open an office, in late May 2012, in the eastern Iranian city of Zahedan to coordinate with the Taliban against the US, which is seen as a bigger enemy by both.

Ancient Iranians built Qanats and Yakhchal to provide and keep water. The first windmill appeared in Iran in the 9th century. Iranians contributed significantly to the current understanding of astronomy, natural science, medicine, mathematics, and philosophy. Khwarizmi is widely hailed as the father of algebra. Ethanol (alcohol) was first identified by Persian alchemists such as Muhammad ibn Zakarīya Rāzi. Throughout the Middle Ages, the philosophy and mathematics of the Ancient Greeks and Persians were furthered and preserved within Persia. The Academy of Gundishapur was a renowned centre of learning in the city of Gundeshapur during late antiquity and was the most important medical centre of the ancient world during the 6th and 7th centuries. During this period, Persia became a centre for the manufacture of scientific instruments, retaining its reputation for quality well into the 19th century.

Iran strives to revive the golden age of Persian science. The country has increased its publication output nearly tenfold from 1996 through 2004, and has been ranked first in terms of output growth rate followed by China. Despite the limitations in funds, facilities, and international collaborations, Iranian scientists remain highly productive in several experimental fields, such as pharmacology, pharmaceutical chemistry, organic chemistry, and polymer chemistry. Iranian scientists are also helping construct the Compact Muon Solenoid, a detector for CERN's Large Hadron Collider. In 2009, a SUSE Linux-based HPC system made by the Aerospace Research Institute of Iran (ARI) was launched with 32 cores and now runs 96 cores. Its performance was pegged at 192 GFLOPS. Sorena 2 Robot, which was designed by engineers at University of Tehran, was unveiled in 2010. the Institute of Electrical and Electronics Engineers (IEEE) has placed the name of Surena among the five prominent robots of the world after analyzing its performance.

In the biomedical sciences, Iran's Institute of Biochemistry and Biophysics is a UNESCO chair in biology. In late 2006, Iranian scientists successfully cloned a sheep by somatic cell nuclear transfer, at the Rouyan research centre in Tehran. According to a study by David Morrison and Ali Khademhosseini (Harvard-MIT and Cambridge), stem cell research in Iran is amongst the top 10 in the world. Iran ranks 15th in the world in nanotechnologies.

Omid satellite. Iran is the 9th country to put a domestically built satellite into orbit.

The Iranian nuclear program was launched in the 1950s. Iran is the 7th country in production of uranium hexafluoride and controls the entire cycle for producing nuclear fuel. Iran's current facilities includes several research reactors, a uranium mine, an almost complete commercial nuclear reactor, and uranium processing facilities that include a uranium enrichment plant. Recently, head of the British top spy agency MI6 forecast that Iran will achieve nuclear weapon capability in two years.

The Iranian Space Agency launched its first reconnaissance satellite named Sina-1 in 2006, and a space rocket in 2007, which aimed at improving science and research for university students. Iran placed its domestically built satellite, Omid into orbit on the 30th anniversary of the Iranian Revolution, on 2 February 2009, through Safir rocket, becoming the ninth country in the world capable of both producing a satellite and sending it into space from a domestically made launcher.

Iranian scientists outside Iran have also made some major contributions to science. In 1960, Ali Javan co-invented the first gas laser and fuzzy set theory was introduced by Lotfi Zadeh. Iranian cardiologist, Tofy Mussivand invented and developed the first artificial cardiac pump, the precursor of the artificial heart. Furthering research and treatment of diabetes, HbA1c was discovered by Samuel Rahbar. Iranian physics is especially strong in string theory, with many papers being published in Iran. Iranian-American string theorist Cumrun Vafa proposed the Vafa-Witten theorem together with Edward Witten.

The economy of Iran is the twenty-fifth largest in the world by GDP (nominal) and the eighteenth largest economy in the world by purchasing power parity (PPP). Iran's economy is a mixture of central planning, state ownership of oil and other large enterprises, village agriculture, and small-scale private trading and service ventures. Its economic infrastructure has been improving steadily over the past two decades but continues to be affected by inflation and unemployment. In the early 21st century the service sector contributed the largest percentage of the GDP, followed by industry (mining and manufacturing) and agriculture. In 2006, about 45% of the government's budget came from oil and natural gas revenues, and 31% came from taxes and fees.

Government spending contributed to an average annual inflation rate of 14% in the period 2000-2004. As at 2007, Iran had earned $70 billion in foreign exchange reserves mostly (80%) from crude oil exports.[199] In 2009 GDP was $336 billion ($876 billion at PPP), or $12,900 at PPP per capita. In 2008, Iran's official annual growth rate was 6%.[200] Because of these figures and the country's diversified but small industrial base, the United Nations classifies Iran's economy as semi-developed (1998).

Iran's automobile production crossed the 1 million mark in 2005. Iran Khodro is the largest car manufacturer in the Middle-East. It has established joint-ventures with foreign partners from 4 continents.

About 1,659,000 foreign tourists visited Iran in 2004; most came from Asian countries, including the republics of Central Asia, while a small share came from the countries of the European Union and North America. Iran currently ranks 89th in tourist income, but is rated among the "10 most touristic countries" in the world in terms of its history. Weak advertising, unstable regional conditions, a poor public image in some parts of the world, and absence of efficient planning schemes in the tourism sector have all hindered the growth of tourism.

The administration continues to follow the market reform plans of the previous one and indicated that it will diversify Iran's oil-reliant economy. Iran has also developed a biotechnology, nanotechnology, and pharmaceuticals industry. The strong oil market since 1996 helped ease financial pressures on Iran and allowed for Tehran's timely debt service payments.

Iranian budget deficits have been a chronic problem, mostly due to large-scale state subsidies, that include foodstuffs and especially gasoline, totaling more than $84 billion in 2008 for the energy sector alone. In 2010, the economic reform plan was approved by parliament to cut subsidies gradually and replace them with targeted social assistance. The objective is to move towards free market prices in a 5-year period and increase productivity and social justice.

Over the past 15 years, the authorities have placed an emphasis on the local production of domestic-consumption oriented goods such as home appliances, cars, agricultural products, pharmaceutical, etc. Today, Iran possesses a good manufacturing industry, despite restrictions imposed by foreign countries. However, nationalized industries such as the bonyads have often been managed badly, making them ineffective and uncompetitive with years. Currently, the government is trying to privatize these industries, and, despite successes, there are still several problems to be overcome, such as the lagging corruption in the public sector and lack of competitiveness. Iran ranks 69th out of 139 in Global Competitiveness Report.

Iran has leading manufacturing industries in the fields of car-manufacture and transportation, construction materials, home appliances, food and agricultural goods, armaments, pharmaceuticals, information technology, power and petrochemicals in the Middle East.