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Q:    Jay, can I ask about Iran?  As you know and have reacted to, Iran's foreign minister laid a wreath at the grave of a Hezbollah leader who was involved in a terrorist attack against Americans.  And we spoke yesterday about these reports of a Russian-Iran oil-for-goods deal.  You’ve made the case repeatedly of why you think Congress should wait and give diplomacy a chance.  Are you concerned that events like these, which you can't control, could have a negative effect and sort of weaken the argument that you're making with folks on the Hill that, look, you need to give us a window of time to try to get a deal done?

MR. CARNEY:  Well, I’d say a couple things.  On the matter of the Iranian foreign minister honoring Imad Mugniyah, the United States condemns the decision taken by the Iranian foreign minister to place a wreath at the grave of a former leader of the Lebanese Hezbollah responsible for heinous acts of terrorism that killed hundreds of innocent people, including Americans.  The inhumane violence that Mugniyah perpetrated and that Lebanese Hezbollah continues to perpetrate in a region with Iran’s financial and materiel support has had profoundly destabilizing and deadly effects for Lebanon and the region.

The decision to commemorate an individual who has participated in such vicious acts and whose organization continues to actively support terrorism worldwide sends the wrong message and will only exacerbate tensions in the region.

Now, I think this speaks to the fact that through the P5-plus-1 and the agreements that have been negotiated, and the process moving forward, we are addressing with our international partners the profound and important challenge of ensuring that Iran does not develop and obtain a nuclear weapon.  There are a host of vital national security interests at stake here, as well as the national security interests of our allies and friends.

Even as we pursue that and do it in a way that demands transparency and verifiability from the Iranians, we do not let up in our views and our positions when it comes to other activities, including the support of terrorist organizations that Iran engages in.

On the matter of the reports about the oil-for-goods deal with Iran that Russia may be engaged in, we've been very clear that we're concerned about that.  When we saw those reports, press reports, it was immediately raised at the highest levels by Secretary Kerry, with Foreign Minister Lavrov.  And I can tell you that if that deal moves forward it would raise serious concerns as it would be inconsistent with the terms of the P5-plus-1 agreement with Iran and could potentially trigger U.S. sanctions against the entities and individuals involved in any such transactions.

So our disposition has not changed on these matters.  And that's why it’s so important to be clear that the actions that Iran takes, the steps it takes to either comply with or not comply with commitments it makes are what we judge Iran by -- not by statements meant for a domestic audience or by promises rather than action.  So we’re going to press forward. 

When it comes to the need to implement the Joint Plan of Action and engage in negotiations through the P5-plus-1 with the Iranians, it is absolutely the right thing to do to test whether or not we can resolve the challenge posed by Iran’s nuclear program peacefully.

The President retains all options, including military options, to fulfill his policy goal.  But it is absolutely preferable to him, to the American people, and to all those who demand that Iran forsake nuclear weapons that this be resolved peacefully.

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