Iran is a developing country that is very rich in hydrocarbon resources. While it should be using those resources to build up its economy and improve the standard of living of its people, its government has seen fit to plow a large percentage of its wealth into its space and nuclear programs. Why does it need them? With all that oil and gas, why does Iran need nuclear reactors to produce electricity? Why does it need to put its own satellites into orbit when there is so much poverty within its borders?
The answer lies in projecting its power. Iran is widely believed to be developing nuclear weapons material; it has managed to get its hands on advanced bomb designs (including a miniaturized variant) and has attempted to put a satellite into space only ten weeks ago (in August 2008). Though there is great prestige in being able to launch one's own satellites, such efforts also serve a secondary (primary?) purpose of enabling one to drop atomic bombs on faraway targets.
Who has to worry about Iran's rapidly growing military power? Israel for sure as Tehran has sworn to destroy it numerous times. The US is also a vilified enemy of the Islamic nation but Europe too is in danger. First, several European countries support sanctions against Iran and this has earned them threats of retaliation. Second, Iran thinks that hitting Europe will deter or hurt the US and several senior Iranian officials have said just that. Europe shouldn't feel too safe because even though Iran is a faraway land, it is getting closer every day.
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