Rumors Of War

Jalal Sharafi was carrying a video-game, a gift for his daughter, when he found himself surrounded. On that chilly Sunday morning, the second secretary at the Iranian Embassy in Baghdad had driven himself to the commercial district of Arasat Hindi to checkout the site for a new Iranian bank. He had ducked into a nearby electronics store with his bodyguards, and as they emerged four armored cars roared up and disgorged at least 20 gunmen wearing bulletproof vests and Iraqi National Guard uniforms. They flashed official IDs, and manhandled Sharafi into one car. Iraqi police gave chase, guns blazing. They shot up one of the other vehicles, capturing four assailants who by late last week had yet to be publicly identified. Sharafi and the others disappeared.

At the embassy, the diplomat's colleagues were furious. "This was a group directly under American supervision," said one distraught Iranian official, who was not authorized to speak on the record. Abdul Karim Inizi, a former Iraqi Security minister close to the Iranians, pointed the finger at an Iraqi black-ops unit based out at the Baghdad airport, who answer to American Special Forces officers. "It's plausible," says a senior Coalition adviser who is also not authorized to speak on the record. The unit does exist--and does specialize in snatch operations.

The Iranians have reason to feel paranoid. In recent weeks senior American officers have condemned Tehran for providing training and deadly explosives to insurgents. In a predawn raid on Dec. 21, U.S. troops barged into the compound of the most powerful political party in the country, the Supreme Council for the Islamic Revolution in Iraq, and grabbed two men they claimed were officers in Iran's Revolutionary Guards. Three weeks later U.S. troops stormed an Iranian diplomatic office in Irbil, arresting five more Iranians. The Americans have hinted that as part of an escalating tit-for-tat, Iranians may have had a hand in a spectacular raid in Karbala on Jan. 20, in which four American soldiers were kidnapped and later found shot, execution style, in the head. U.S. forces promised to defend themselves.

Some view the spiraling attacks as a strand in a worrisome pattern. At least one former White House official contends that some Bush advisers secretly want an excuse to attack Iran. "They intend to be as provocative as possible and make the Iranians do something [America] would be forced to retaliate for," says Hillary Mann, the administration's former National Security Council director for Iran and Persian Gulf Affairs. U.S. officials insist they have no intention of provoking or otherwise starting a war with Iran, and they were also quick to deny any link to Sharafi's kidnapping. But the fact remains that the longstanding war of words between Washington and Tehran is edging toward something more dangerous. A second Navy carrier group is steaming toward the Persian Gulf, and NEWSWEEK has learned that a third carrier will likely follow. Iran shot off a few missiles in those same tense waters last week, in a highly publicized test. With Americans and Iranians jousting on the chaotic battleground of Iraq, the chances of a small incident's spiraling into a crisis are higher than they've been in years.

Sometimes it seems as if a state of conflict is natural to the U.S.-Iranian relationship--troubled since the CIA-backed coup that restored the shah to power in 1953, tortured since Ayatollah Khomeini's triumph in 1979. With the election of George W. Bush on the one hand, and Iranian President Mahmoud Ahmadinejad on the other, the two countries are now led by men who deeply mistrust the intentions and indeed doubt the sanity of the other. Tehran insists that U.S. policy is aimed at toppling the regime and subjugating Iran. The White House charges that Iran is violently sabotaging U.S. efforts to stabilize the Middle East while not so secretly developing nuclear weapons. As the raids and skirmishes in Iraq underscore, a hidden war is already unfolding.

Yet a NEWSWEEK investigation has also found periods of marked cooperation and even tentative steps toward possible reconciliation in recent years--far more than is commonly realized. After September 11 in particular, relations grew warmer than at any time since the fall of the shah. America wanted Iran's help in Afghanistan, and Iran gave it, partly out of fear of an angry superpower and partly in order to be rid of its troublesome Taliban neighbors. In time, hard-liners on both sides were able to undo the efforts of diplomats to build on that foundation. The damage only worsened as those hawks became intoxicated with their own success. The secret history of the Bush administration's dealings with Iran is one of arrogance, mistrust and failure. But it is also a history that offers some hope.