The creation of the Shanghai Cooperation Organisation (SCO) triggered various reactions worldwide, which ranged from indifference and suspicion to demands for cooperation. Iran was quick to seize the SCO's potential, relinquished the official position of non-alignment it had held since 1979 and applied for full membership on 24 March 2008. This article analyses the rationale for Iran's shift from its traditional policy of non-alignment to seeking full membership of the SCO. The article also argues that global changes have created opportunities for three key actors—China, Iran and Russia—to consolidate their regional influence and curb US hegemony in Asia and the Indian Ocean Region.