. . .

MR. CROWLEY: Well, because we believe sanctions are increasing. We are enforcing 1929 country by country, and in the private sector, company by company are refusing to do business with Iran. It is having an impact on the ground and it is contrary to the best interests of the Iranian people who definitely want to have a different kind of relationship with the rest of the world. And that potential exists if Iran will meet its obligations and help us understand the nature of its nuclear program and convince the rest of the world that it does not have - is not intent on building a nuclear weapon. But as long as the international community feels that Iran is pursuing a nuclear weapon, then Iran can expect to have these sanctions continue to bite.

QUESTION: P.J. --

MR. CROWLEY: Hold on.

QUESTION: Are you satisfied with the Lebanese Government? They avoided any military agreement with Ahmadinejad.

MR. CROWLEY: We had expressed our concerns to the Lebanese Government that Iran might have had Hezbollah's best intentions at heart, but certainly did not have the best intentions for all of the Lebanese people. I think that was clear yesterday by the tenor of Mr. Ahmadinejad's trip to Lebanon.

QUESTION: When President Obama --

QUESTION: Still on Iran. I'm sorry, still on Iran. Do you have any feelings about Iran's election to the presidency of OPEC (inaudible)?

MR. CROWLEY: I'm sorry, what?

QUESTION: Election to the presidency of OPEC. Iran - the oil minister of Iran was elected to --

MR. CROWLEY: I'll see if we've got a view on that.

QUESTION: Okay.

QUESTION: P.J., you were talking about the sanctions --

MR. CROWLEY: Hold on, hold on. We're still on Iran.

QUESTION: Yeah, I'm still on Iran.

MR. CROWLEY: Well, all right. Ladies first. (Laughter.)

QUESTION: Thank you. You were saying that you've heard that the sanctions are having an effect on Iran. We're hearing from the private sector that they are being affected, the private sector businessmen, especially in the UAE. They're saying it has affected them and, therefore, the people, and not necessarily the Revolutionary Guards and those that have been designated; whereas the U.S. has been saying that the intention is not to harm the general public.

MR. CROWLEY: That is our intention. And to the extent that we can, we are directing our efforts at entities that we think support the government and its policies. I don't think that we can deny that there are ripple effects and that there are impacts that go beyond that. But obviously, we want to see a different relationship between Iran and the rest of the world. We want to see the Iranian people have the same opportunities to travel, to engage as others in the region and around the world have. And the only thing that's impeding Iran from having that kind of relationship with the United States and the rest of the world is the government and policies of Iran. If they change their policies, if they meet their obligations then certainly, as we continue to offer the prospect of engagement and a different kind of relationship, that depends squarely on what Iran does and what policies it chooses to pursue.

QUESTION: So maybe it is hope that the government will change its course through pressure from the people within the country?

MR. CROWLEY: Well, it's a fundamental obligation of any sovereign government to meet the needs of its people. And clearly, Iran's current policies, its pursuit of nuclear technology - and we believe a nuclear weapon - is contrary to the long-term interest of its people.

QUESTION: When - during his campaign and after he took office, President Obama always said that he has a door of diplomacy open. Is that door shut on Iran or is it still open?

MR. CROWLEY: Well, not at all.

QUESTION: And what exactly you are expecting from Iran?

MR. CROWLEY: No, not at all. In fact, as was announced, Catherine Ashton of the EU has extended an invitation for Iran to meet next month in what we hope will be serious discussions on Iran's nuclear program. We are awaiting Iran's response. So we have a dual-track strategy. We're going to continue to pursue pressure on the one hand, but the door has been open to Iran for some time, and really - literally, the ball is in Iran's court. We hope they'll respond to Catherine Ashton and hope we can begin a sustained dialogue with Iran.

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