Problem:
The relationship between the two nations took a huge turn though during Clinton's Presidency. In June of 1996, the Khobar Towers Attack in Saudi Arabia occurred. This was believed to be carried out by Iranian proxy forces but was never confirmed and led to the death of 19 Americans. Washington was ready to lead military reprisal against Tehran, however immediately perceived any actions could worsen tensions and lead to full-scale war. Instead, President Clinton strengthened economic sanction even further by banning trade and investment with Iran with the Iran-Libya Sanctions Act of 1996. The Clinton administration also declared a "state of emergency" on Iran as well. Yet, 8while the strong economic war was taking place along with a close situation of a hot war, President Clinton and the newly elected Iranian President at the time, Khatami, were communicating indirectly with a desire to ease tensions. They even both made public statements about reconciliating relations. Need Assignment Help?