In the Post-Cold War era structural change in the aftermath of 9/11 resulted in American “unilateral interventionism” with an unprecedented show of power. This is based on American foreign policy agenda being, initially directed by the neocons ideology, to deal frontally with issues like nuclear proliferation international terrorism, possession of oil wealth and protection of the state of Israel. However, the US invasion of Afghanistan 2001 and Iraq 2003 led to a rearrangement of regional policies in favour of Iran. The indisputable influence in Post-Taliban Afghanistan as well as Post-Saddam Iraq and having a strategic partnership with Syria, a central presence in Lebanon through Hezbollah have made Iran the most powerful actor in the region for the foreseeable future. This however, does not mean an inflexible Iranian position on key issues. A shift has occurred in Iran’s foreign policy which is based on careful pragmatic consideration of its agenda. The central argument of this study is based on the empirical assumptions of neo-realism and the need to find a solution as Frances Fukuyama puts it “After the neocons”. To analyse the perception and role of Iran, and US we have taken insights from theories of neorealism and techniques of foreign policy analysis. The study is focused on the role of incipient political entities.