Article: And Now for the Big Political Headache: Iran: Most of the Middle East is enjoying a booming economy, despite the three-year incursion in Iraq. But as President Bush fields increased criticism over the invasion, neighboring Iran remains in flux.

Against a backdrop of a healthy economy in most of the Middle East-ongoing violence in Iraq and the December 30 execution of Iraqi dictator Saddam Hussein aside-one of the biggest U.S. policy questions that remain is Iran.

The International Monetary Fund predicts that 2006 year-end growth numbers for the Middle East will be nearly six percent, after 5.7 percent growth in 2005 and 5.5 percent growth in 2004. Phillip Smith, a London-based analyst at Fitch ratings who follows the Middle East, says most of the economic activity in the Middle East is predicated on oil, but as long as oil prices remain fairly stable, and Smith says there is no real reason to think they ...

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