Iran but not with the United States, and not with Israel—a state which Iran's government has derecognized since the 1979 Revolution. Among Muslim nations, Iran has severe relationship with Saudi Arabia due to different political and Islamic ideologies while Iran is a Shia Islamic Republic and Saudi is a conservative Sunni monarchy. Regarding the Israeli–Palestinian conflict, the government of Iran has recognized Jerusalem as the capital of the State of Palestine, after Trump recognized Jerusalem as the capital of Israel. On 14 July 2015, Tehran and the P5+1 came to a historic agreement ("Joint Comprehensive Plan of Action") to end economic
Politics of Iran revolutionary leader Ayatollah Khomeini and his supporters in power. Iran's post-revolution challenges have included the imposition of economic sanctions and suspension of diplomatic relations with Iran by the United States because of the hostage crisis, political support to Iraq and other acts of terrorism that the U.S. government and some others have accused Iran of sponsoring. Emigration has lost Iran millions of entrepreneurs, professionals, technicians, and skilled craftspeople and their capital." For this and other reasons Iran's economy has not prospered. Poverty rose in absolute terms by nearly 45% during the first 6 years since Iraqi invasion on Iran started