Since the 1979 Islamic Revolution, U.S.–Iran relations have evolved into a complex and enduring rivalry shaped by five interlocking forces: proxy competition, economic pressure, Gulf energy politics, American exceptionalism, and the influence of U.S. think tanks. This review draws on interdisciplinary scholarship to argue that Washington’s continued use of deterrence, sanctions, and isolation reflects not just strategic concerns but also domestic politics, institutional inertia, and moral narratives that frame Iran as a permanent adversary. Energy policy, once focused on oil flows and chokepoints, now intersects with climate diplomacy and market transitions, complicating traditional containment strategies. At the same time, think tanks help convert ideological beliefs into policy orthodoxy, narrowing the space for diplomatic alternatives. By examining these material and symbolic dynamics, this review calls for more adaptive policymaking, one that reevaluates entrenched assumptions, measures coercive tools by real-world outcomes, and aligns energy strategy with an evolving geopolitical and environmental context.