On November 4, 1979, militant Iranian students occupied the American embassy in Tehran with the support of Ayatollah Khomeini. Fifty-two Americans were held hostage for 444 days. On April 7, 1980, the United States broke diplomatic relations with Iran, and on April 24, 1981, the Swiss Government assumed representation of U.S. interests in Tehran. Iranian interests in the United States are represented by the Government of Pakistan.

In accordance with the Algiers declaration of January 20, 1981, the Iran-U.S. Claims Tribunal (located in The Hague, Netherlands) was established for the purpose of handling claims of U.S. nationals against Iran and of Iranian nationals against the United States. U.S. contact with Iran through The Hague covers only legal matters.

Commercial relations between Iran and the United States are restricted by U.S. sanctions and consist mainly of Iranian purchases of food and medical products and U.S. purchases of carpets and food. The U.S. Government prohibits most trade with Iran.

There are serious obstacles to improved relations between the two countries. The U.S. Government defines its areas of objectionable Iranian behavior as the following:

• Iranian efforts to acquire nuclear weapons and other weapons of mass destruction;
• Its support for and involvement in international terrorism;
• Its support for violent opposition to the Middle East peace process; and
• Its dismal human rights record.

The United States has had discussions with Iranian representatives within the UN framework on the issue of Afghanistan and reserves the right to similarly discuss other issues when it serves U.S. interests. The United States believes, however, that normal relations are impossible until Iran's policies change.