Existing scholarly research on terrorism has largely ignored the role of international relations and its effects on patterns of terrorism. This study argues that strategic interstate relationships can affect the amount of terrorism that a state experiences and should be considered along with ÒtraditionalÓ determinants of terrorism, such as domestic institutional and macroeconomic variables. The study specifically looks at state sponsorship of terrorism, arguing that while we cannot reliably identify state sponsors of terror, we can indirectly observe relevant evidence of state sponsorship. To support this claim, the study examines the annual number of transnational terrorist attacks that occurred in all countries during the period 1975Ð2003. The results demonstrate that states involved in ongoing rivalries with other states are the victims of more terrorist attacks than states that are not involved in such hostile interstate relationships.