For a behind-the-scenes look at how Jews are treated in Iran, I highly recommend reading this article. [Ed.—Link is fixed. Thanks for pointing out my faux pas, SD!] Maybe this is who Mahmoud Ahmadinejad meant didn't exist in the Islamic Republic.
One Iranian Jew interviewed by Hoffman said that Jews in Iran know they are sitting on a powder keg--at least half of them think that either Israel or the US will attack Iran's nuclear reactors. And when they do, the Jews of Iran will pay the price. Even without encouragement from the government, the Iranians on the street will take it out on the Jews.
Another Iranian Jew tells Hoffman that it was not the threat of war that brought him to Israel, but the desire to live as a Jew. "There, it is difficult to keep Mitzvot, to keep Kosher, to pray and to learn about Judasim. On Shabbat the children have to go to school—everything there is more difficult.
He continues, saying that it is the Israeli government that Iran hates—and not the Israelis themselves. He believes that things are better than they were 10 years ago—when there was a water fountain in the marketplace in Tehran with 2 faucets: one for Muslims and one for Jews. If a Jew dared to drink from the faucet for Muslims he would be beaten up. Today it is different.