The image on the left shows U.S. First Lady Michelle Obama announcing the Best Picture Oscar to Argo live from the Diplomatic Room of the White House, February 24, 2013. On the right is a Fars news agency's digitally altered version of an image showing Obama on stage at the Oscars. (Youtube screengrab/Reuters photo)

Iran's state-run media manipulated a photo of U.S. first lady Michelle Obama's Oscars dress to make it less revealing.

Obama wore a silver sleeveless dress by Indian-born American designer Naeem Khan, which was lauded by fashion media.

Fars news agency, an arm of the Islamic republic's Revolutionary Guards, gave the first lady's frock sleeves and a high neckline in an image running with article about her announcing Argo's best picture win.

Fars branded Argo, which depicts the rescue of six American hostages from revolutionary Iran, as a "controversial anti-Iranian film" made by the "Zionist" Warner Bros.

The state news agency was not pleased with what it saw as Obama's endorsement of the film.

Iranians not associated with the regime took to the Internet to decry the film's win, arguing it negatively stereotypes Iranians.

Fars only permits women in hijabs to appear on air and has a history of using Photoshop when forced to run an image that contravenes its dress code.