Iran stands at a critical juncture in its history. In the era of Presidents Hassan Rouhani and Barack Obama, the Islamic Republic has a unique opportunity to regain its traditional greatness as a cradle of rich civilisation and culture, with a capacity to be a very influential and stabilising regional actor. In this incisive analysis, Amin Saikal, a leading expert on Iranian politics, traces Iran's transition from pro-Western monarchy to Islamic Republic and explores the choices open to Rouhani's moderate reformist government. The Islamic Republic has endured a difficult journey throughout its existence. But since Khomeini assumed power in 1979 it has been characterised by a degree of exceptionalism, which has seen Iran lock horns with the United States and