Due to its cultural capacities, Islamic revolution of Iran has challenged US interests in Islamic world especially the sensitive area of middle-east through the application of cultural power and soft power earlier than US. Islamic awakening, political and revolutionary Islam which has spread all over Arab Countries in middle-east and north Africa is an outcome of methods, tools and soft power applied by Iran through its culture and its religious as well as revolutionary ideology. This study specifically explains cultural and soft capacities, methods and tools of both sides and offers the prospects of this confrontation.