Thirty-four years ago, the Islamic Revolution changed not only Iran's leadership, but also brought complex and tense relations with the United States. The focus of this article is an analysis of an Iranian engagement policy option outlined in the CSIS report “The Gulf Kaleidoscope: Reflections on the Iranian Challenge.” The theory of international relations liberalism is applied using the principles of economic interdependence and democratic transparency. For three decades, exchanges between the United States and Iranian diplomats have been tactical, not strategic. There are various policy options that can be used effectively and strategically to communicate, and ultimately negotiate, with Iran. “Iran poses a threat to regional stability because its regime pursues a variant of the same ideology that motivates al Qaeda.” The policy option of neither deterrence nor containment is not in the United States' interest. Both options would increase the diplomatic and military needs of the United States in a time of fiscal constraints, not to mention the complexity and risk associated with such strategies. Furthermore, the methods focus on isolating Iran, a strategy of isolating Iran does not influence the country's behavior. The United States must clarify policy objectives, including any constraints and limitations. It is important to identify strategic ends, ways and means that achieve the desired end goal of preventing Iran's nuclear and regional hegemony ambitions. “The engagement aims to increase shared interests in order to induce better Iranian behavior.” Since 1979, US sanctions have affected Iran's economic well-being. The U.S. Department of State, and its host of foreign service officials, have the lead role in... mid-document... tute.org/policy-analysis/view/assessing-engagement-strategy- tactics- e-contentWaltz, K. N. (2012). Why Iran should equip itself with the bomb: nuclear balance would mean stability. Foreign Affairs, 91(4), pp. 3. Hastedt, Glenn P. "Chapter 1: Defining America's Foreign Policy Problems." In American Foreign Policy, 9th ed. James Madison University New York: Longman, 2011, pp. 3. Hastedt, Glenn P. "Chapter 1: Defining America's Foreign Policy Problems." In American Foreign Policy, 9th ed. James Madison University in New York: Longman, 2011, pp. 3. Prager, Dennis (2013). Yes, we are the world's policeman. Human Events: Powerful Conservative Voices. http://www.humanevents.com/2013/09/17/yes-we-are-the-worlds-policeman/Alterman, Jon B., ed. “Gulf Kaleidoscope: reflections on the Iranian challenge”. Center for Strategic and International Studies, Washington, DC, May 2012, pp. 18