Iran’s provocative missile tests ten days ago again fueled the debate on the likelihood of aerial strikes against Iran. Since last week’s thaw, however, an attack on Iran by the end of President Bush’s tenure no longer appears in the offing. Moreover, the narrow, exclusively military focus of the debate misses the broader picture. The overall U.S. strategy of containing Iran has failed in principle. And the attempt to impose a sanctions regime on Iran has led to an erosion of U.S. strategic influence in Asia and the Middle East. Over the long term, Washington’s shortsighted containment policy will only hurt Western business in the region. It will also play into the hands of China, drive crucial allies away, and render Iran untouchable.