Despite the government's insistence that US and UN 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 US among some in the public. But they are also fueling criticism among Iranian politicians that President Mahmoud Ahmadinejad is mismanaging the crisis with his hardline stances that worsen the standoff with the West.
Washington announced new sanctions on Thursday, targeting Iran's elite Revolutionary Guards, which the US accuses of supporting terrorism by backing Shiite militants in Iraq. The sanctions ban US 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 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 fuel rationing in an attempt to reduce subsidies for imported gasoline.
Word of the US 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 UN," 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 US sanctions on some Iranian banks, his son living in Germany could not send him money through the banks, instead using private money exchangers.
Still, much of the anger appeared focused at the West.
"This will be another step by [US President George W.] 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 US.
"Hard-liners in Tehran were looking forward for the sanctions. It helps them hide their incompetence behind the embargo," said political commentator, Saeed Laylaz.
However, worry over sanctions has been increasingly expressed by those high up in Iran's clerical leadership. Hasan Rowhani, who sits on two powerful cleric-run bodies, said that "the economic impact is felt in the life of the people." He said Ahmadinejad was just making more enemies for Iran.
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