Tired of President Obama's cautious approach, lawmakers look to sanction the two regimes.
He dismisses Ahmadinejad's accusation that US meddled in Iranian politics and must apologize.
The German chancellor, who visits the White House Friday, has criticized Obama's fiscal policies and refused to substantially increase troop levels in Afghanistan.
Household incomes went up in May, buoyed by the stimulus, but consumer spending still lags.
The Islamic republic is unlikely to change its foreign policy or nuclear program, no matter who comes out on top. But the crisis could change Arab relations with the US and Iraq.