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| 1997 | President |  |
| 23rd May Muhammad Khatami is elected President of Iran
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| 1998 | Diplomacy | |
| President Khatami calls for a "dialogue with the American people" in American TV interview but in a sermon a few weeks later he is sharply critical of US "oppressive policies"
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| 1999 | Diplomacy | |
| Twentieth anniversary of US embassy siege, hardliners celebrate the occasion, as reformists look to the future rather than the past
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| 2000 | Diplomacy | |
| Feb President Clinton extends ban on US oil contracts with Iran, accusing it of continuing to support international terrorism
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| Mar US Secretary of State Madeleine Albright calls for a new start in US-Iranian relations and announces lifting of sanctions on Iranian exports ranging from carpets to food products
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| 2000 | Election | |
| 18th Feb Iranian reformists win landslide victory in the general election
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