Since the rise of the ayatollah regime in Iran in 1979 and its role in the establishment of Hizbollah in Lebanon in 1982, the two – in the context of their patron-protégé relationship – have used terrorism as a tool in their struggles with enemies at home and abroad. Since the terrorist attacks in the United States, and in light of many states’ reduced tolerance for terrorism exported from their sovereign territories, the Iranian regime reined in its terrorist acts and those of its protégé on the international arena. However, the most recent acts against Israelis abroad, carrying the fingerprints of Tehran, may be a sign that Iran and Hizbollah are reverting to their familiar evil ways. If so, the international community and various security establishments will have to face the challenge of foiling continued activity of this sort and attempt to determine the future direction of the Iranian regime, primarily in light of the possibility that the international sanctions and embargo against Iran because of the nuclear issue will intensify.