Iran commonly known as Persia in the Western world is intertwined with the history of a larger region, comprising the area from Anataloi and Egypt in the west to Ancient India and Syr Darya in the east, and from the Caucasus and the Eurasian Steppe in the north to the Persian Gulf and the Gulf of Oman in the south. Once a major empire of superpower proportions, Iran has endured invasions by Greeks, Arabs, Turks, and Mongols. Iran has continually reasserted its national identity throughout the centuries and has developed as a distinct political and cultural entity. Iran is home to one of the world's oldest continuous major civilizations, with historical and urban settlements dating back to 4000 BCE. Nearly some time ago, Iran was the leader of a powerful arc of Shiite influence that stretched from Tehran to Baghdad to Damascus to Beirut. But with Al Qaeda franchises cropping up in almost every nook and corner of Middle East and sectarian divisions tearing throughout the region, that is no longer the case. Now Iran is eagerly trying to re-establish its dominant position on the world stage and throughout the region.

In 1978, the year before the Islamic revolution, oil-rich Iran’s GDP was double to that of Turkey. Today it is half that of Turkey but the Iran’s human capital, civilizational heft (some 5,000 years of Persian history), and natural resources means it can be a major global player and, like Turkey, be a member of the G20. But now equations are changing constantly for Iran on global and regional, both fronts. A new relationship between Iran and the West takes another step this weekend with the first visit of Europe's foreign policy chief, Catherine Ashton, to the Islamic Republic. The visit comes as relations between Iran and the West warm up following last year's election of Rouhani, who vowed to "constructively engage" with Western nations. Iran wants Western and UN sanctions that are severely hurting its oil-dependent economy lifted, having won limited relief in exchange for curbing its most sensitive nuclear work under the six-month Geneva deal. If the so-called “interim deal” between Iran and Western powers evolves into a steady normalization of relations between them, it could potentially bolster Iran’s geopolitical and geo-economic status in the region, which holds dramatic implications for U.S. allies such as Israel and Saudi Arabia. While Israel is afraid of Iran’s emerging economic and political powers as a major challenge to the former’s hegemony, Saudi Arabia deems the rapprochement between Iran and the West crucial not only to Iran’s rising political stature but also to the resurgence of sectarian competition in the region with Iran leading the Shiite camp.

Just a while ago, the International Monetary Fund (IMF) in its first regular assessment of Iran after more than two years predicted a positive growth in country's economy before the end of 2015. Iran is pro actively trying to change regional equations in its favour as well. Let’s see few example- Iran and the UAE are close to reaching an agreement on three long-disputed islands near the Strait of Hormuz, perhaps the world’s most important oil chokepoint. The strait carried roughly 35% of all seaborne traded oil in 2013. According to a high level UAE source, “Iran will retain sea bed rights around the three islands while the UAE will hold sovereignty over the land.” Omani officials mediated the talks. The deal with the UAE is just the latest sting to Saudi Arabia from its fellow GCC members and Organization of Petroleum Exporting Countries (OPEC) nations. Oman is planning to build a pipeline connecting it with Iran’s natural gas fields as part of a $60 billion deal to increase cooperation and trade between the two countries. Iraq recently announced its plans to collaborate with Iran to increase its oil production capacity to 9 million barrels per day (bpd), challenging Saudi Arabia’s domination of OPEC. The Saudi Kingdom produced 9.8 million bpd in December 2013. Since the overthrow of Hussein in 2003 and the emergence of a new political regime in Iraq, the two neighbours have developed unique relations. No one could have predicted that these former enemies would forge such a close political, cultural and economic relationship. Bilateral trade stood at $12 billion in 2013 making Iraq one of Iran’s top five trading partners. In Iran’s non-oil trade, Iraq is the most significant export market.  

Iranian influence in Afghanistan’s Herat province is already tremendous, with several million dollars’ worth investment and robust cross-border trade and Tehran definitely wants to make more inroads although they are not the most favoured, if not disapproved of, by the Afghans. Afghanistan is Iran’s gateway to the larger Central Asian region and China. It is already working towards instituting a North-South corridor between the Central Asian States, Afghanistan, China, and the greater West Asia and North Africa, using Chabahar Port on its southern border thereby luring these countries away from their dependence on Pakistan’s restive South for their access to sea lanes. On the home front also Iran is working very hard it has been racketing up its domestic military production. Last month the regime marked 35 years since the 1979 Islamic Revolution by holding a special display of the nation's domestic military industry advances in the last decade, bragging that it has the "biggest army in the region". The fruits of the Islamic regime's military industry included domestically produced submarines, fighter jets, missiles, drones, and advanced radar system, Iranian semi-official news agency Fars reported that two new missiles were tested on the eve of the anniversary. One is a laser-guided missile, and the other is a long-range ballistic missile that can carry multiple warheads and reportedly evade anti-missile defence systems.

Moreover now United States is realizing the utility of Iran in the Middle East which is reflected in its changed approach towards the Islamic republic. America has dropped its “axis of evil” rhetoric long ago, and now talks about complex manoeuvring among the many rival camps in the Middle East. Washington sees rational partners among the new Iranian leadership, notably Rohani, with whom cooperation will be possible if necessary. The United States can draw on the Iranians’ help in a large number of regional issues on which Tehran can wield influence. Iran might, for example, be able to help stabilize the situation in Afghanistan after the departure of the American forces from that country at the end of this year. Tehran also wields the greatest influence on the Shi’ite government in neighbouring Iraq. Above all, Iran is a player to be reckoned with in Syria. Without the support of both Tehran and Moscow for President Bashar Assad, the Syrian president would long since have surrendered to the hundreds of rebel groups that are now actively trying to topple him. For the first time since 2006, the American public does not view Iran as the country’s “greatest enemy,” according to a recent Gallup poll. Instead, that (dis)honor is reserved for China. So, all this indicates a US policy shift towards Iran.

The regional upheaval of the last few years has changed the balance of power, and Middle East is going through a “strategic recalculation" with Iran emerging as the new game changer. Iran is the much coveted prize in any future gamble in the Middle East. With its well-established institutions, Iran is a rock compared to the sand dunes the rest of the Middle Eastern countries are built on. The Iranian economy has the potential to move from its current below-average performance to becoming a developed economy. It has all the resources (natural, human and geostrategic) that an economy would need to play a much more significant role on the international stage. So it won’t be an exaggerated statement to make that Iran is a rising star of Middle East.