In its annual report, the US Intelligence Service predicted Iran will expand its nuclear program, noting that Tehran will continue to undermine US influence and support Shia.

The report states: "Iran will pose a continuing threat to the United States and allied interests in the region, attempting to undermine America's influence and support Shiites abroad, solidifying its influence, demonstrating its power in neighbouring countries, shifting international pressure, and reducing threats to the stability of the regime."

He added: "Although Iran's deteriorating economy and poor regional reputation pose obstacles to its objectives, Tehran will try a range of tools - diplomacy, expansion of its nuclear programme, military sales and acquisitions, and attacks by agents and partners - to achieve its objectives. We expect Iran to take risks that could escalate tensions and threaten the interests of the United States and allies in the coming year. "

The report states that Tehran's actions "will reflect its perceptions of the hostility of the United States, Israel and the Gulf States. Its ability to demonstrate strength through conventional weapons and proxy forces; and its desire to extract diplomatic and economic concessions from the international community.

On the negotiation with Washington, US intelligence reported: "Regime leaders may be reluctant to engage diplomatically in talks with the United States in the near term without sanctions, humanitarian relief or the return of the United States to the Joint Comprehensive Plan of Action (JCPOA). Iran remains committed to countering American pressure, although Tehran also fears involvement in an all - out conflict. "