New PISM Report examines Iran’s confirmed efforts in setting up the foundations of its potential nuclear arsenal. The starting point is a short outline of Iran’s ambitions and progress since 1974, followed by an outline of its covert Amad Plan, or its equivalent to the Manhattan Project. After discussing Iran’s potential as monitored by the IAEA, the main challenges that could prevent or accelerate a strategic decision to assembly nuclear arsenal are examined. Its existing and foreseeable means and systems of weapons delivery are also assessed. Separate sections are devoted to the U.S. strategic options and implications for Europe.