Selling Toothpaste to Tehran

Iran's political turmoil has raised some intriguing business questions: How would a shift to a less anti-West regime affect U.S.-Iran trade? And how much trade does the United States already do with the scofflaw regime?

Officially, only a limited number of goods can be exported from the United States to Iran, thanks to the varying sanctions that have been in place since the hostage-taking of nearly three decades ago. Under the Bush administration's "axis of evil" doctrine, the screws were tightened even further. Except for crops such as wheat and soybeans and medical supplies such as vaccines, the United States does not send goods to Iran.

Except when it does. Intrepid investigative journalists have pounded the pavement in Tehran and told of shops stuffed with everything from Apple (AAPL) iPods to Crest toothpaste, all American-made and decidedly not "officially" permitted. Paradoxically, even as the United States has tightened its sanctions, Iran's demand for American goods—fueled by a surge in disposable income due to rising oil prices—has steadily escalated. In 2007, Iran exported $57 billion worth of oil, a figure that makes up around 85 percent of the country's total export revenues, according to the Department of Energy.