From the NYT:
European governments are resisting Bush administration demands that they curtail support for exports to Iran and that they block transactions and freeze assets of some Iranian companies, officials on both sides say. The resistance threatens to open a new rift between Europe and the United States over Iran.Even on the verge of subduing Iran, Europe hesitates. If there is such a thing as Old and New Europe, the worst of both appears most prominent.
Administration officials say a new American drive to reduce exports to Iran and cut off its financial transactions is intended to further isolate Iran commercially amid the first signs that global pressure has hurt Iran’s oil production and its economy. There are also reports of rising political dissent in Iran.