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This article focuses on the two political factions in Iran, the Jihadi (traditionalist combative) and the Ijithadi (creatively interpretive) and their competition and accommodation since the Revolution. The author argues that US-policy and developments in the region have favoured the Jihadis and enabled President Ahmadinejad to act more intransigently and assertively than would otherwise been the case. At a time of profound shift in the sectarian and strategic balance in the region, the challenge for the US and its allies is to widen the arena for Ijithadis within Iranian politics. [ABSTRACT FROM AUTHOR]