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International sanctions hit Iranian economy

20 December 2010 Last updated at 18:09 GMT

There is clear evidence that international sanctions are now having an impact on the Iranian economy. The government is slashing subsidies on food - doubling the cost of bread. The decision comes just a day after fuel prices surged by 400%.

Security forces have flooded the capital in a warning to people not to protest. The sanctions have been intensifying as part of the continuing pressure to get the Iranians to stop uranium enrichment.

James Reynolds reports.