TEHRAN, Iran, Oct. 26, 2007

New U.S. Sanctions Draw Iranian Ire

Regime, Citizens Angry At U.S., But Ahmadinejad Also Facing Fresh Criticism

    • An Iranian shopkeeper talks with a potential customer at the Tehran's main Bazaar, Iran, Thursday, Oct. 25, 2007. Despite the government's insistence that U.S. and U.N. sanctions aren't causing any pain, some leading Iranian figures have begun to say publicly that the Western pressure does hurt.

      An Iranian shopkeeper talks with a potential customer at the Tehran's main Bazaar, Iran, Thursday, Oct. 25, 2007. Despite the government's insistence that U.S. and U.N. sanctions aren't causing any pain, some leading Iranian figures have begun to say publicly that the Western pressure does hurt.  (AP Photo/Vahid Salemi)

    • Secretary of State Condoleezza Rice announcing stronger sanctions against Iran, Oct. 25, 2007.

      Secretary of State Condoleezza Rice announcing stronger sanctions against Iran, Oct. 25, 2007.  (CBS)

    Previous slide Next slide
  • Play CBS Video Video Eye To Eye: Sanctions On Iran

    "Only on the Web": Richard Haass, President of the Council on Foreign Relations, speaks with Katie Couric about the international implications of the U.S.'s latest sanctions on Iran.

  • Video Tighter U.S. Sanctions On Iran

    The U.S. has cut financial ties to Iran's banks and businesses run by the military to force the country to abandon its nuclear program, but skeptics say the sanctions won't work. Jim Axelrod reports.

  • Video Iran Sanctions Analysis

    The Bush administration is punctuating a round of tough rhetoric against Iran with new economic sanctions. But what does it all mean? Richard Haas explains.

  • Timeline The U.S. And Iran

    Key events in once friendly, now contentious relationship between Washington and Tehran.

  • Fast Facts Iran

    Learn about the people, economy and history.

(CBS/AP)  Despite the government's insistence that U.S. and U.N. sanctions aren't causing any pain, some leading Iranians have begun to say publicly that the pressure does hurt. And on Tehran's streets, people are increasingly worried over the economic pinch.

The sanctions have heightened resentment of the United States among some in the public. But they are also fueling criticism among Iranian politicians that President Mahmoud Ahmadinejad is mismanaging the crisis with hard-line stances that worsen the standoff with the West.

Washington announced new sanctions Thursday, targeting Iran's elite Revolutionary Guards, which the U.S. accuses of supporting terrorism by backing Shiite militants in Iraq. The sanctions ban U.S. dealings with the extensive network of businesses believed linked to the Guards - and put stepped-up pressure on international banks to cut any ties with those firms.

The reaction from Ahmadinejad's government was familiar. CBS News reporter Larry Miller says the regime called the measures illegal under international law, and said they were "doomed to failure".

The chief of the Revolutionary Guards shrugged off the sanctions, saying "the corps is ready to defend the ideals of the revolution more than ever before."

"They have applied all their efforts to reduce the efficiency of this revolutionary body," General Mohammad Ali Jafari said Thursday, according to the state news agency IRNA.

The sanctions come at a time when Iran's economy is struggling, with dramatic price rises this year. The costs of housing and basic foodstuffs like vegetables have doubled or even quadrupled. The government also has imposed unpopular fuel rationing in an attempt to reduce expensive subsidies for imported gasoline.

Word of the U.S. move angered people in Tehran.

"The sanctions will damage us, our children and our people and not the government. Prices of everything increased up to double after former sanctions by the U.N.," said Morteza Morovvati, a 45-year-old teacher. "Who in the world and the Iranian government is going to care about ordinary people?"

Hashem Nazari, a retired clerk for an electricity equipment company, said that even before the new U.S. sanctions on some Iranian banks, his son living in Germany could not send him money through the banks.

"For the past two months, he has sent me money through private money exchangers," Nazari said.

Still, much of the anger appeared focused at the West.

"This will be another step by (President) Bush toward igniting war in the region," Mansour Rasti, 28, a graduate student in political science, said of the new sanctions.

Marzieh Aghai, a 37-year-old government bureaucrat, said she would support her country no matter what. "They (the Americans) don't know the Guards. We are proud of them."

Ahmadinejad and his allies are likely counting on sanctions to rally Iranians against the United States.

Quote

Hard-liners in Tehran were looking forward for the sanctions. It helps them hide their incompetence behind the embargo.

Political commentator, Saeed Laylaz
"Hard-liners in Tehran were looking forward for the sanctions. It helps them hide their incompetence behind the embargo," said political commentator, Saeed Laylaz.

CBS News senior White House correspondent Bill Plante said there is no guarantee the new sanctions will have the effect desired by President Bush.

In a report Friday for CBS News' Early Show, Plante pointed to previous U.S. attempts to change another nation's policy or leadership through sanctions; 45 years of measures against Cuba, 10 years against Myanmar, and a battery of policy against Saddam Hussein - all of which failed in their objective, and sometimes caused civilian populations huge grief without altering the behavior of leaders.

"The new U.S. sanctions against Iran are just the latest in a string which goes back to the 1980s, all of which the Iranians seem to have shrugged off," said Plante.

Richard Haas, President of the Council on Foreign Relations, told CBS Evening News anchor Katie Couric (Video) that unilateral sanctions rarely bare much fruit. "History suggests it will not change Iranian behavior."

But, the new sanctions could worsen Ahmadinejad's political woes. Many conservatives who once backed him have joined reformers in criticizing Ahmadinejad. They point to his failure to fulfill promises to repair the economy - despite increased oil revenues - and say his fiery rhetoric goads the West into punishing Iran.

Stuart Levy, the Undersecretary for Terrorism and Financial Intelligence at the Treasury, defended the new, "targeted, narrow, conduct-based sanctions we're currently imposing".

Levy told CBS News the measures were "much, much more powerful, much more effective," than previous unilateral sanctions used by the U.S. government.

Ahmadinejad's sudden replacement of Iran's top nuclear negotiator with a close loyalist over the weekend also angered many conservatives in parliament.

Worry over sanctions has been increasingly expressed by figures high up in Iran's clerical leadership. Earlier this month, Hasan Rowhani, who sits on two powerful cleric-run bodies, the Experts Assembly and the Expediency Council, said that "the economic impact is felt in the life of the people." He said Ahmadinejad has just been making more enemies for Iran.

On Sunday, Ahmadinejad's predecessor as president, Mohammad Khatami, a reformer who remains influential, complained that Ahmadinejad claims "problems have been resolved but we see that problems remain unresolved."

The Bush administration hopes its new sanctions will push companies around the world to cut their business ties with Iran. "It is increasingly likely that if you are doing business with Iran you are doing business with the IRGC," Treasury Secretary Henry Paulson said, referring to the Guards.

Miller reports that Nicholas Burns, the third-ranking official at the State Department, admonished Russia to stop selling weapons to Iran and China to stop investing capital in the Islamic Republic. Burns spoke in an interview with a British radio station.

Meanwhile, the head of Iran's elite Revolutionary Guards dismissed the possibility of a U.S. military action against Iran and warned that his forces would respond with an "even more decisive" strike if attacked, an Iranian news agency reported Friday.

Asked about the possibility of an American strike on Iran, Gen. Mohammad Ali Jaafari told reporters late Thursday, "These words are just exaggerations, and I don't consider them a threat," the news agency ISNA reported.

"The Islamic Republic has the strength and power of its people's faith. This power is joined with experience, knowledge and technology in the realms of defense. The enemy knows it cannot make any mistake, so these words are just exaggeration," he said.

© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Share:
  • Share
  • Yahoo! Buzz
  • Mixx
Add a Comment See all 373 Comments
by usaprophet October 28, 2007 9:53 PM EDT
I want to report a major fire, friends. CBS isn''t reporting it. Our Constitution is on fire. And it''s currently being burned in Congress. See H.R. 1955, a.k.a., Violent Radicalization and Homegrown Terrorism Prevention Act of 2007. I couldn''t believe it. Apparently, activists with Web sites are really begining to anger the elite insofar as they are publically holding officials accountable for their evil. The bill passed the house on Oct 23, in spite of Congressman, Ron Paul''s opposition. The right to free speech on the Internet is gone, my friends. Look it up for yourself, and weep for your country as I have that our rights have eroded this far. Here''s a short excerpt from the bill''s DEFINITIONS statement: "The development and implementation of methods and processes that can be utilized to prevent violent radicalization, homegrown terrorism, and ideologically based violence in the United States is critical to combating domestic terrorism." Here''s another excerpt from the bill''s FINDINGS statement: "The Internet has aided in facilitating violent radicalization, ideologically based violence, and the homegrown terrorism process in the United States by providing access to broad and constant streams of terrorist-related propaganda to United States citizens." And guess who get''s to decide what is "terrorist-related propaganda?" You got it! The Department of Homeland Insecurity, an agency that''s answerable ONLY to The President. If Ron Paul isn''t elected, our country is doomed!
Reply to this comment
by rerrorislam3 October 27, 2007 7:03 AM EDT
two fascist nazi terrorislamistic countries down, iran next, then syria, then???

Bashar Assad and Mahmoud Ahmadinejad looking for spider holes hahaha
Reply to this comment
by usayesterday October 27, 2007 6:10 AM EDT
Posted by downtowner97 at 01:00 AM : Oct 27, 2007
.........

LOL!!!

Great post!
Reply to this comment
by red164 October 27, 2007 5:32 AM EDT
Will debate you anytime....


Posted by poopusbuttus at 12:10 AM : Oct 27, 2007

I''m sure they can''t wait. (ROLLING MY EYES)
Reply to this comment
by downtowner97 October 27, 2007 4:00 AM EDT
Step 1
Find nest of bees
Step 2
Find stick
Step 3
Whack bee nest with stick
Step 4
Tell loyal troops to stand amid angry bees and swat wildly
Step 5
Tell troops they can''t leave until bees stop stinging

This is not the Republican party of my youth. This is something new, weird and dumb.
Reply to this comment
by radiob-2009 October 27, 2007 3:21 AM EDT

Rudy dressed up as Dr. Frank N Furter of the "Rocky Horror Picture Show" . A obamanation in the white house, simply hillaryous.
Reply to this comment
by poopusbuttus October 27, 2007 3:10 AM EDT
HUNGRY -- Not ducking out on you. Had to leave work and just got home. Lots of rain in this area and it makes traveling a nightmare....

Will debate you anytime....
Reply to this comment
by rowdytexan2 October 27, 2007 2:57 AM EDT
Strange isn''t it...George Bush (the Schrub) had never done anything but be Governor of Texas when he was elected...almost ruined education funding while he was here.

Before that, all he''d done was bankrupt three corporations, and owned a baseball team, for pete''s sakes. A baseball team that almost bankrupted the city building a stadium for it.

I distinctly remember a time when there was an outcry from all the macho men, that she had too much influence in the White House. So, I think her experience with Bill in the White House, and her experience in the Senate gives her a real leg up in the government experience. Certainly as much as any of the male candidates I''ve seen.

Frankly, there''s only one other candidate I''ve listened to and read about that I''d vote for, but I don''t think his party will let him get near the nomination. He''s not CLONE enuff.

I do know that when the Clinton''s were in the White House this country was very well run...and well off. I don''t see any flies on Hillary. Many will, of course, remember their marital problems and hold that against her. But to me, that''s their personal business...I care more about a well run country.
Reply to this comment
by toolmangler-2009 October 27, 2007 2:07 AM EDT
Nite all.
Reply to this comment
by j-whitman October 27, 2007 2:05 AM EDT
Tool,,, see ya later, UFC is on
Reply to this comment
See all 373 Comments

Exclusive Webshow

International recording artist Shakira on love, career and more. Watch Now

  • MOST POPULAR
Latest News
News in Pictures
Scroll Left Scroll Right
Connect with CBS News

Stay connected with the CBS News using your favorite social networks and online news applications: