Former, no. Khomeini was alive at the time. Iran is the home of militant, Islamic fundamentalism and the world's biggest state sponsor of terrorism. They have used for amost 30 years asymetrical warfare against its enemies. In the interest of their own survival, they recognize that direct confrontation was not the best course of action. The WOT won't be won without regime change in Iran.
FYI: I consider the President of Iran be a current, not former, terrorist. He is also a puppet of the mullahs. His pronouncements have created the perceived external threat to Iran to create a diversion from the regime's domestic troubles and it has had the effect of raising oil prices pouring more money into the mullah's coffers.