the european union has imposed strong measures against the iranian financial sectors as well as the iranian revolutionary guard for its south korea and japan, two of iran's major trading partners, have taken actions to limit financial links with iran. other nations including canada, the uae and others have opposed financial measures -- have put up financial measures. the effect of the sanctions has been clear -- they have slowed around nuclear efforts. sanctions and export control levers have made it more difficult and costly for iran to acquire key materials and equipment for its enrichment program. in may of 2011, the u.n. panel of experts concluded that sanctions are slowing the nuclear program in iran. in 2007, the head of the iranian nuclear organization said they would have 50,000 centrifuges installed within four years. the iaea has about 6000. it is more expensive for them to proceed. it would be far more economical for iran to purchase nuclear fuel on the international market than to develop an indigenous and richmond and fuel capability. iran continues to make huge investments in

>> what we found were a number of significant ties to the iranian banking system with an iranian bankhich has been designated as a supporter of terrorism by the united states government. um not saying we found evidence of terrorism just a tie to that designated bank. >> they had illegal transactions between iran's bank and financial institution lloyd's bank. >> he offered services to iranian banks. >> they found stripping. >> what is stripping? >> international banking system. this is prant out of the type of message that would be communicated between banks. it was incoming to lloyd. if you look at the top message from the bank it says please do not mention our name to any bank in the united states. and they don't. >> they were instructed to hide any evidence that this came from iran? >> it is against the law to cause his transfers to go through the united states and through u.s. banks. >> in a deferred prosecution agreement lloyd admitted it altered records from money transfers to iranian banks. it paid 50 million in fines and fore pit if tour -- forfeitures. they said they have sett

to make ordinary iranians suffer the sanctions that have been imposed upon the iranians through the government wish government the british government are directed at ordinary iranians the banking system and therefore imports and exports so it is basically very much directed at ordinary people and this itself is angered iranians and since iranians are sophisticated people they don't rely on the b.b.c. or c.n.n. they know that the recent statement by the i a has no new evidence whatsoever that it's based upon forged information a laptop that was presented. what the americans say that they have which they never allowed i inspect and so the iranians feel that all of this pressure and the problems that the british government are trying to impose on the people. are based upon. animosity towards the iranian people more than anything else while you're talking i was looking over your shoulder at those pictures today and we thought we were just going to get will put up in a second of what was happening there at the embassy i guess these western sanctions to squeeze iran was seen by some as a

nation, for the iranian people, i don't know for the iranian leaders because it's a very difficult question but at some point iran, which is a good nation will realize that its best interest is to cooperate with international community instead of choosing as i think some european leaders said yesterday and this morning going its own path, to choose isolation. at one point we want to make sure that is to avoid isolation and if you look at the other options because there are obviously other options and some have to remain on the table just for the sake of being there, but that said, if you look at using them, you will see a correct assessment will make no other option. i think -- you have also to choose the option which is the most -- not only available but the most commonly seen as the only one possible. on procedure, very quickly. you know that maintaining a committee is difficult. it has involved historically in-depth regular contact to each month initially have reflection and what we call the e.u. three, that's the france, u.k. and germany and u.s. and some initiatives came from u.s. trea

iran has failed to intimidate the gulf states to yielding to iranian dominance and indeed, i think iranian contact, and i have spent a lot of time working on this has cost countries to unify as never before in resisting iran. the gulf preparation council states are more united than ever and more willing to challenge to iran. iran has failed in its efforts to take advantage of the arabs bring and to put it mildly, the arabs bring has been unkind to iran. you cannot imagine narratives that contrast more. it caught iranian leaders flatfooted and unprepared. evidence from tunis to domestic has made a lie that claims can only come to violent resistance and meanwhile, the iranian regime's hypocrisy has been exposed as they purport to celebrate these uprisings by crushing dissent at home. just like al qaeda, and this has presented a fundamental narrative challenge to al qaeda, iran's model of extremism and denial of human rights is being repeated by dart -- by generation demanding universal rights by taking to the streets. young people in tunisia, egypt and syria are not protesting to be more lik

iranians. in any way or form have the capability to attack their country because an iranian response would be very severe and they would. very bad for the global economy and especially if things are with. the economic situation and you know i. generally believe that these countries really don't want to. cause trouble with regard to further sanctions unilateral sanctions by the united that's really nothing new in the american to basically gone as far as they could in the past and they really haven't caused all that much damage they hope to the iranian people and to iran ordinary iranians. for example the i.m.f. if you look at the website the iranian economy has grown better than that of the united states or its european partners over the past few years so in general the iranians feel that the american strength is weakening and we even see that in the letter. issued by. board it did not contain any of the major elements of the american. relative decline in american fortunes and american power pow

those iranian people the same group of iranians how the regime is anxious. that they are suffering from american sanctions from israeli war they are suffering from did regime yes you are absolutely right the point here is this i believe if the united states wanted iran to build nuclear weapons it is trying to do its best to do it i mean what the u.s. is doing what israel is are doing are really pushing this damage the public toward that when a zation i think there is a plot out there exactly of what is a mix of public and that there actually let me explain to let me explain that mr lover of the foreign minister of russia has put a plan on the table the plan says let's work a deal between the five plus one and iran on an incremental basis and there which iran will suspend its illicit activities and the u.s. will lift sanctions now part of that plan iran has accepted accepted to ratify the additional protocol it has accept. an immaterial who are ready for a certain way they promised they would. it would be part up that they have accepted to send that spent the

this is a reminder as you suggested there are other countries that the iranian -- the iranians dislike just as much. >> there is something deep about the british-iranian anger a lease from the iranian perspective. it did not just go -- start with the 1953 coup which the britain -- british and cooperativiranias cooperated with. the iranians felt the british were pushing them around, had their eye on iran and made iran subservient to britain. >> what does this tell us about internal politics if you can read anything into what has happened? >> there is a fair amount of unity that iran has to show it is not weak. there is a question, does the tension with the world help iran in any way? over time, we're right to see more iranian voices. the fact that britain would not have an overwhelming response that they did not capture sailors made iranians more secure, we can squeeze the brits a little bit and it will not hurt us too much. >> thank you for coming in. from iran to neighboring pakistan where there is tension of a different sort. after some of that said it announced it is withdrawing fro

economy than to the iranian government.ret? >> ed henry on the north lawn, thank you. >> we learned the s&p rating service has cut its credit ratings on 37 of the world's largest financial institutions, including some of the biggest here in the u.s. on the list, bank of america, citigroup, goldman sachs group, jpmorgan chase, morgan stanley, and wells fargo. s&p says the changes reflect a new methodology reflecting less confidence in the ability of governments to bail out troubled banks. >>> american airlines and its parent company are filing for bankruptcy. the country's third largest airline is trying to cut cost and unload massive debt brought on by labor struggles and high fuel prices. american says the filing will have no impact on travelers for now. >>> stocks were mixed today, and a political showdown is brewing over a payroll tax cut. democrats want to pay for it by raising taxes on high income earners. republicans do not. here's chief congressional correspondent mike emanuel. >> this week the senate's expected to t

we also must admit that the iranians are not without their own challenges. having two fledging democracies on their border in iraq and afghanistan is a huge geothreat to the preservation of the regime. the arab spring is a repudiation of radical islam. indeed the people in the streets are seeking political reform, social justice, and economic opportunities which are the pain stream of western democracies. suddenly, iranians are taking advantage of the opportunities, the social unrest that the arab spring provides, but no one demonstrated on behalf of their flawed values. losing a state sponsored terrorist like gadhafi is a set back as is the upheaval in syria, the thurm one al -- number one ally in the region. all that said, it is time to review our strategy for iran against the harsh reality despite res rick, attempts to negotiate, isolate, and sanction, the fact is the iranians continue to use their proxy against the united states interest and continue to pursue nuclear weapons. therefore, one must conclude the obvious, that our policy has failed, and it h

we also must admit that the iranians are not without their own challenges.aving two fledging democracies on their border in iraq and afghanistan is a huge geothreat to the preservation of the regime. the arab spring is a repudiation of radical islam. indeed the people in the streets are seeking political reform, social justice, and economic opportunities which are the pain stream of western democracies. suddenly, iranians are taking advantage of the opportunities, the social unrest that the arab spring provides, but no one demonstrated on behalf of their flawed values. losing a state sponsored terrorist like gadhafi is a set back as is the upheaval in syria, the thurm one al -- number one ally in the region. all that said, it is time to review our strategy for iran against the harsh reality despite res rick, attempts to negotiate, isolate, and sanction, the fact is the iranians continue to use their proxy against the united states interest and continue to pursue nuclear weapons. therefore, one must conclude the obvious, that our policy has failed, and it has

we also must admit that the iranians are not without their own challenges.having two fledgling democracies on their borders in iraq and afghanistan is a huge geopolitical threat to this tyrannical control of their own population and preservation of the regime. the arab spring is a repudiation of radical islam. indeed, the people in the streets are seeking political reform, social justice and economic opportunities which are the mainstream of western democracies. certainly, iranians are attempting to take advantages of the opportunities the social unrest of the arab spring into slides, but no one is demonstrating on behalf of their flawed values. losing the state sponsored terrorist like gadhafi is a setback as is the upheaval in syria, their number one ally in the region. all that said, it is time to review our strategy for iran against the harsh reality that despite our rhetoric, attempts to negotiate, isolate and sanction, the fact is the iranians continue to use their proxies against united states interests and continue to pursue nuclear weapons. therefor

and it's still acting like a child. >> you understand iranian politics. do you think anybody within tehran is on board with this kind of radical action against the west or are there some voices who might be saying hold on the second, we need these lines of communication. >> i suspect there is a divide. the problem is those exerting the most power are opposed to diplomatic retired -- to diplomatic dialogue and having a channel through britain. a very important ally and tehran knows that. it shows that those are willing to take tough action are in a sentence. >> it's a fascinating story and i think we will be hearing more on this in the next few days. tense relations between britain and iran. now for some other news from around the world -- there has been violence in syria, footage has emerged showing civilians coming under fire. activists say six people died in the violence. the syrian government says it has freed more than 900 prisoners involved in the recent anti-government protest. supporters of the former ivory coast president have expressed outrage at

i hear it from iranians and others. iranian nuclear infractions have to be recognized as infractions. iran is a signatory to the mpt. it embraces certain obligations. if it is in violation of those obligations, as iaea suggests, there needs to be penalties. those penalties cannot be mitigated or disregarded because of the undeclared israeli capability or because the united states has certain nuclear programs. the united states would be better if it moves to the zero option and whatever reduces its nuclear weapons. it will give a greater degree of credibility to the american case. the fact that these things are not happening at the pace one would like to see does not necessarily mean iranian in fractions are not real and significant. >> let's take some more questions. the gentleman in the center. >> good morning. i am and in turn. my question is, what have we learned from the economic sanctions we put on north korean at? why haven't we apply that knowledge to iran? you never answered the question and about the sanctions

the iranian regime controls the media inside the country. weren't affiliated with the government that basically leads you to believe the opposite. so, this looks like it's retaliation of some sort against the british for, perhaps, strat bank sanctions passed recently by the british and by the eu. >> now, the u.s. has said it is considering those -- taking the same steps, central bank actions, that is, sort of the next and perhaps last economic pressure that could be applied. timing may not be right right now. but it's something that's certainly very much on the table and sounds, from what they're saying over at treasury, they're leaning forward on that. >> well, i think that's right. certainly, the recent action the united states took designating iran as an area of concern under section 311 of the patriot act was a first step to doing that. remains to be seen if u.s. will go the full mile and sanction the central bank or try to sanction smaller banks around the world doing business with iran. but certainly it's still on the table but i think

anger, at least from the iranian perspective.s goes back 200 years as a britain was a power in the persian gulf and the iranians felt that the british were pushing them around and made iran subservient to britain. >> what does this tell us about internal politics? >> there is probably a fair amount of unity that iran has to show they are not weak. over time, we are going to see more iranian voices. the fact that britain would not have an overwhelming response made iranians more secure, we can squeeze the brits a little bit and it will not hurt too much. >> thank you for joining us. from iran to pakistan where there is trouble of a different sort, pakistan has said that they are withdrawing from a meeting on security. they are pulling out in protest of a nato air strike which killed pakistani troops. without pakistan, does the conference have much meaning? >> nato convoys at a standstill. vital supplies going nowhere as pakistan's borders remain firmly closed to nato traffic. they margaret our soldiers, says this truck driver. --

the iranian diplomats have until friday afternoon to leave the country. after that, this embassy will be empty and britain and iran will have to find another way of to indicating. this morning in tehran, the parliamentary speaker said that the protesters' actions reflected popular opinion. iran state television called the closures hasty. and the indices' will not bother hard liners. -- empty indices -- embassies will not bother hard-liners. after yesterday's violence, the phones in tehran and london will go unanswered. diplomatic ties are at their lowest point for more than 20 years. >> for more on all of the events unfolding in tehran and the international reaction, i am joined by a senior fellow at the u.s. institute of peace that has written extensively on iran. you were in iran and the american hostages were released into this rest remind you -- your in iran when at the american hostages were released. >> absolutely. >> what is the fallout of britain closing there and see? this does close an important means of communication. >> you have six major powe

the world. >> and what do we know about the iranian government? we've had so many mysterious things happen. we've had unexplained explosions, people on the street say sab toj, iranian government disagrees, rebutts that. one report yesterday. one a month or so ago. we've had that mysterious plot, plot the that justice department claimed was against saudi diplomat here. what is going on in iran right now? >> well, andrea,i the iranian government is ruled by hard line conservative forces around the revolutionary forces, they have been ais send antsy for the last several years. you wonder why would they do this? i think have you to look at domestic politics. this is uncivilized behavior by the iranian government to allow an embassy to be stormed and also illegal. iran has a responsibility to protect foreign diplomats as well as diplomatic property. but it may be the power struggle under way, and lolgts of faxes vying for power, has allowed this to happen. it may be one group see it in its interest to have this kind of thing happen but it's going to ha

has those import nations that creation why is iranian nuclear weapon. is structured the russian now that's the strength of the society all i said i mean what we're going to do i cannot sit and watch you go and why don't you just give them up my friend my friend you don't you cannot tell a country not to do any is studies for any of these that interest at the fact that they tell a country a lot of the illegal weapons building get them out i mean it's all done dennis of course is guilty of the lies in iraq the only energy julian gentlemen not only that's a very good question hanging out here talking on everybody patrick i am a factor let me go to patrick in london ok look i mean there are thousands of troops are involved american troops on both sides of iran there is a very. a strong american fleet to the south ok and it's being threatened constantly with attack and even invasion so i mean if i were part of the political elite and to run i would probably want to nuclear weapon because you know if you don't then you fall down the path of what iraq libya i

iran's state-run tv reports that young iranians also stormed another british embassy in tehran where they briefly held six embassy staff members captive. these people were soon released and handed over to the relative authorities. motabash sanati, nhk world, tehran. >>> british prime minister david cameron calmed the attack outrageous and indefensible. china, united states and russia are criticizing iran for how it handled the incident. >> the united states condemns this attack in the strongest possible terms. it is an affront not only to the british people but also to the international community. >> translator: the attack is not in line with the rules of international law and relations. the incident has to be dealt with properly. >> the russian foreign ministry says the british embassy attack goes against the principles of international law and says russia cannot condone such an act. >>> japanese foreign minister criticized the attack saying the government is considering new sanctions. >> translator: the government will consult with other countries to consider new measures against i

>>reporter: some believe this could have been order by the iranian government, when the iranian parliament pass add bill to cut iran's diplomatic ties to the united kingdom in retaliation against the economic sanctions imposed by britain, a british member of parliament suggested they immediate raid the british embassy. and some say this is an attempt to portray it as a grass roots movement when it is not. >> we have for reason to believe it was students and it was the government. the government routinely orders these types of attacks and this type we have motivation, to show to the international community and britain them not stand for any type of aggression toward them. >> this is similar to the 1979 u.s. hostage crisis with our embassy defunct since this and the iranian revolutionary guard uses it as a train center. >>shepard: now the former under secretary at state department who teaches international politics at harvard business school. these mullahs rarely leave the country and do not know about the outside world. what is going on in there? >>guest: well, you are right. the iranian go

look at the iranians, the saw -- saudis. we tolerate it because we're afraid to make them mad at us because of energy. >> how do you go after that? first build up -- >> [inaudible] i would say we're going to keep them not gist to be independent, but have a surplus of energy to sell into the world market so you're not frightened so there's two problems. you got, you know, the iranians on one side, the saudis on the other. >> don't like each other? >> that makes it to our advantage, but the threat of the saudis is the spike in price and crippling the world economy, and the iranians close the straits and block t persian gulf. that's why the people surround us. when you face the people who are clearly actively hostile to your civilization, you have to think seriously about how much pressure you're prepared to be, and the saudi regime is not a strong regime. i will be clear to the saudis that they have to get control over the money spent on this. they have to change the nature of what they are doing. they are exporting which is t

the attack on the embassy was the big story and the iranian morning papers. at what they made of it varied. conservative papers stressed the protesters motivation, anchor at the sanctions. imposed last week. -- anger at the sanctions imposed last week. at this paper blamed fundamentalists for the problem startes. the iranian state tv broadcast the speech that said the protestors were not acting on orders but their anger was justified. this only increases iran's isolation and the international committee. germany, france, and several other countries have temporarily withdrawn their ambassadors to iran. >>> our correspondent has been following the dispute from london. it i put it to him that at the moment it looks like the start of a diplomatic warfare. >> well, that is a strong word, but it is serious. interestingly, diplomatic ties are not entirely cut between the two countries. the foreign secretary william hague insisted on that today in parliament, which is important. in diplomatic speak, that means that representatives of the two countries can still speak

i yelled at you has those important nations a very clear issue why is iranian nuclear weapon anywhere close to the russian. that's running this trial into a society and i said we will look at it you cannot do that last year well it is like they just killed the mother my friend my friend you don't you cannot tell a country not to do any studies for any of these that mention the fact that they tell a country after the volleys of. building get now i mean till then dennis of course is guilty it was indeed on the energy julian gentlemen not only that's a very good question hanging out here in on everybody i am a professor let me go to patrick in london ok look i mean there are thousands of troops on both sides american troops on both sides of iran there is a very. a strong american fleet to the south ok and it's being threatened constantly with attack and even invasion so i mean if i were part of the political elite and to run i would probably want to nuclear weapon because you know if you don't then you fall down the path of what iraq libya i mean no wonder north korea is going down that

iranian government for the attack.- they are clearly blaming the iranian government for the attack. tehran pose a representative in london was summoned to the foreign office today. the general language was pretty strong. cameron said the attacks were outrageous. he warned of serious consequences. pretty strong words. >> you are in london. how is this attack being read in britain? >> despite the strong language, the british do not think it is overestimated. some analysts point out a possible power struggle in tehran. the demonstrators are mostly supporters of the supreme leader and not the presidents. the absence of the u.s. embassy in tehran does not make do with the british embassy. >> all right, thank you very much. in other news, pakistan is angry. on tuesday, the government said it will boycott an international conference on afghanistan in protest of last weekend's nato at sekula 24 pakistani soldiers died in that attack. the announcement caught the attention of world leaders today. we have this report from here in

already in place against iran options that israel has warned could include a military strike meanwhile iranian president mahmoud ahmadinejad's has been defined promising not to yield to the pressure and calling the findings fraudulent . the americans are fabricated if you keepers and given them to the chief and he speaks here and there about these papers why don't be even publish one report on the united states why don't the publish even one report on the fronts of the united states and. iran maintains that its program is meant to obtain nuclear energy for electricity only but the u.s. and its western allies are worried a nuclear armed iran could lead to a regional arms race and poses a direct threat to israel. what most people do not realize even china and india that are considered less enthusiastic for sanctions are extremely worried because an aggressive iran nuclear iran can threaten hundreds of millions of people in these countries. however because the report fails to state whether iran's efforts have resumed or tapered off since two thousand and three there is still no concrete reason to

we also must admit that the iranians are not without their own challenges.aving two fledging democracies on their border in iraq and afghanistan is a huge geothreat to the preservation of the regime. the arab spring is a repudiation of radical islam. indeed the people in the streets are seeking political reform, social justice, and economic opportunities which are the pain stream of western democracies. suddenly, iranians are taking advantage of the opportunities, the social unrest that the arab spring provides, but no one demonstrated on behalf of their flawed values. losing a state sponsored terrorist like gadhafi is a set back as is the upheaval in syria, the thurm one al -- number one ally in the region. all that said, it is time to review our strategy for iran against the harsh reality despite res rick, attempts to negotiate, isolate, and sanction, the fact is the iranians continue to use their proxy against the united states interest and continue to pursue nuclear weapons. therefore, one must conclude the obvious, that our policy has failed, and it has

has those import nations that the creation why is iranian nuclear work is. this what's your question. that's the strength to a society well i said i want to get it you cannot hit us you go with the just give them up my friend my friend you don't you cannot tell a country not to do any of studies for any reason and the fact that they tell a country a lot of the families are open it doesn't mean they are building it now i mean that is of course is they'll be wise in iran was the energy julian gentlemen not only there's a very good question hanging out here not everybody patrick i am a poor factor let me go to patrick in london ok look i mean there are thousands of troops on both sides american troops on both sides of iran there is a very. a strong american fleet to the south ok and it's being threatened constantly with attack and maybe even invasion so i mean if i were part of the political elite in surround i would probably want to nuclear weapon because you know if you don't then you fall down the path of what iraq libya i mean no wonder north korea is going

the iranian -- the iranian -- the uranium enrichment activities, in particular.he uranium enrichment program. the board of governors and the u.s. security council called on iran to apply the additional protocol and a modified code. i will dig into those in just a few minutes. let's cover what we know in terms of the latest news. we know that -- here is the bad news, we know that iran continues to build up its stockpile of uranium. 19.75% interest uranium. that is close to the dividing line between lowly enriched and highly enriched bread -- and rich. it is going to take a few hundred kilos of that amount of material to have enough for one bomb. iran has something like 80 kilograms. they have also amassed 4,900 kilograms of about 3.5% low enriched uranium. if they went for broke and a completely converted back into weapons-grade material, you might get three or four bombs. the so much good news is that there is not enough material to provide iran with a troop break out capability. although it is worrisome. some other good news is that sanctions, export controls, h

well iran has been under thirty years of sanctions so the entire structure of the iranian economy is based around sanctions being in place and so the same things that you saw put in place yesterday they're a very short step from total sanctions on the iranian central bank and what we're finding now is that we've run out of other things ascension and so we may actually end up sanctioning you running the oil exports and for the first time actually sanctioning something that could impact us here in the u.s. economy's in europe economies around the world so we're going to find out that sanctions actually come with a cost not just to ordinary people inside of the country that are being sanctioned who certainly do suffer under these measures more so than the government but they're also going to start impacting ordinary people around the world and in addition to iran syria is now in line to face sanctions similar to what we saw in libya the syrian ambassador is calling the u.n. resolution an act of war he says the aims to affect the independence of their political decision making minute sto