How should Western governments deal with the Islamic Republic of Iran, which Washington labels “the most active state sponsor of terrorism”?

Iranian aggression began in 1979, with the seizure of the U.S. Embassy in Tehran, and the holding of some of its staff as hostages for 444 days. Major subsequent attacks included two bombings in Beirut in 1983: at the U.S. embassy, killing 63, and at a U.S. Marine barracks, killing 241.

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American responses fall into two main camps: tough and diplomatic. The first sees Tehran as irredeemable and counsels a policy of confrontation and even force; it assumes that diplomacy, sanctions, computer viruses, and threats of military strikes have no chance of dissuading the mullahs from going nuclear, and it speaks of regime change or a military option against the Iranian bomb. The diplomatic camp, which generally controls U.S. policy, accepts the permanence of the Islamic Republic of Iran and expects Tehran to respond to diplomatic overtures.

A main battleground in this dispute is the question of whether or not the most prominent Iranian opposition group, the Mujahedeen-e Khalq (MeK), should remain on the U.S. government’s terrorism list. The tough camp generally views the MeK, founded in 1965, as a lever against the mullahs and (with a minority dissenting) wants it delisted. The diplomatic camp argues that delisting would anger the Iranian leaders, hampering efforts to improve relations, or (contradictorily) would limit Washington’s ability to reach out to the Iranian street.

The pro-MeK side argues that the MeK has a history of cooperating with Washington, providing valuable intelligence on Iranian nuclear plans and tactical intelligence about Iranian efforts in Iraq. Further, just as the MeK’s organizational and leadership skills helped bring down the shah in 1979, these skills can again facilitate regime change. The number of street protestors arrested for association with the MeK points to its role in demonstrations, as do slogans echoing MeK chants, e.g., calling Supreme Leader Ali Khamenei a “henchman,” Pres. Mahmoud Ahmadinejad a “dictator,” and shouting “down with the principle of Velayat-e Faqih” (that a religious figure heads the government).