There is, in fact, an embargo on all Iranian goods. I'm not aware of any loopholes, and honestly, I wouldn't pursue it. You run the risk of having this rug confiscated at customs and then you are out of your rug and your chance at a refund. I wish I had better advice!

Thanks folks. I am really very upset about the whole affair, because the defects were obvious, yet the dealer portrayed the goods as being brand new and in excellent condition. As I entered into this transaction in good faith, I now feel I was mislead and also feel dumb.

Perhaps one way forward is to seek a partial refund and try and offload the rug at a low price very quickly because I have no interest in hanging on to it.

A fair outcome though is for the original dealer to take responsibility, find a dealer outside the US who is willing to take the rug at whatever price they agree to and refund me my original purchase price. I don't want to be involved in such a thing I did not ask for that.

sorry if that was not clear from my original posting, but I am based out side the US ad rug was exported from the US.
If I am based in the US, I'll have obtained a refund no matter what the dealer want.