The dress, a shimmering silver, sleeveless gown by Indian-born American designer Naeem Khan, was widely praised in the U.S fashion press.
The official White House photo is above.
In its rendering of the photo, the Iranian news agency raised the neckline and added short sleeves. Iranian state TV also blurred out the first lady's attire in its coverage of the Oscars.
Fars, which is affiliated with the Islamic Revolutionary Guards Corps, noted that it was unusual that Obama had announced this year’s award for Best Picture, which went to what it called the "controversial and anti-Iranian" film "Argo." Traditionally, Hollywood notables announce the winners.
The hard-line news agency said the movie is a production of the "Zionist" Warner Bros. Entertainment company.
NOT THE FIRST TIME: An Iranian hard-line website once blurred out images of alleged U.S. spy Sarah Shourd
Since its release in October, Iranian state media have blasted "Argo" for its unflattering portrayal of life in Iran following the 1979 Islamic Revolution.
Here's the official "Argo" trailer:
While Fars apparently did not approve of Obama’s dress, it did like the attire of the wife of Palestinian director Emad Burnat, whose film, "Five Broken Cameras," became the first Palestinian documentary film nominated for the prestigious award.
"The interesting point to notice in the [Oscars ceremony] was the presence of the wife of the Palestinian filmmaker in Islamic hijab," Fars commented in a short news story devoted to how Burnat’s wife was dressed.
Fars, which frequently accuses Iranian actresses of flouting the Islamic dress code at international award ceremonies, seemed to suggest the Palestinian woman could be a role model for Iranian actresses.
"The comparison between the clothing of Burnat’s wife in the Oscar ceremony and the attire of Iranian actresses in international festivals is worthy of reflection," it said.
-- Golnaz Esfandiari