Abstract: This article analyzes how foreign policy is made in the Islamic Republic of Iran. To do so, it analyzes the role of various state institutions, factions, and individuals in the formulation and conduct of foreign policy. Actual powers of various institutions in Iran have evolved greatly since 1979. The history and causes of such institutional changes are discussed briefly. Iran is not a one-man dictatorship. Rather, it is ruled by an oligarchy comprised of fundamentalist Shia clerics and lay fundamentalists. The ruling elite is composed of competing factions such as hard-liners, expedients, and reformists, as well as sub-factions such as pragmatic hard-liners and ultra-hard-liners. The oligarchy is deeply divided on many issues, including on foreign policy. This article presents, in great detail, the views and policy proposals of the top members of the oligarchy regarding Iran’s nuclear program, relations with the U.S., and Iran’s regional policies. Finally, this article applies the findings of this research to the case of Iran’s nuclear program. Evidence shows that Iran has had a clandestine nuclear weapons program. This article analyzes the ruling oligarchy’s responses to the global reaction to Iran’s nuclear program.