To achieve lasting security in the Arabian Gulf region, U.S. policy, though currently focused on Iraq, must engage Saudi Arabia and Iran with all of its instruments of national power to encourage the spread of democracy within the region. Iraq, Saudi Arabia, and Iran are the three regional powers along the Persian Gulf. The Gulf region is important to the United States because of its resources, strategic geography, potential for crises and instability, and centrality to the Muslim religion. The endstate of U.S. policy in the Persian Gulf should be lasting peace and security, both of which can be encouraged by the spread of democracy. "Democracy" need not mean a carbon copy of that practiced by Western Europe or America. But it does mean governments that are representative, adhere to the rule of law, and protect the rights of minorities. Iraq, as an emerging democracy, has the potential to be a regional leader. An American presence in Iraq will need to continue for the distant future to meet Iraq's security needs and to provide U.S. forces access to the region. Iraq is a fundamental component of American foreign policy because it demonstrates America's commitment to freedom and security in the region. Saudi Arabia is a long-time partner of the United States in the Gulf and in the Global War on Terrorism. The U.S. Government has little desire to see the Saudi regime removed from power. American engagement with Saudi Arabia must focus on economic development, government reform, and respect for human rights. Iran is an important and complex part of U.S. policy in the Gulf. Its regime seeks hegemony in the region at America's expense by exploiting its mineral wealth, limiting access to the Gulf, attempting to foil America's efforts in Iraq, and through nuclear proliferation. The policy options for America towards the Iranian regime boil down to three things: regime change, containment, and engagement.