@ DavidR, bob3160, Marc57,
What is the embargo?
As for the Flame worm, (or virus) malware creators are targeting only countries such as Iran, etc. It is said it is likely to be a nation/state(s) behind it, with the authors supported and funded by them, and is said to be the most complex/advanced malware specimen ever discovered. It is possible this malware is connected somehow with the embargo, so it would, of course, then be directed at the targeted nation/states, as it now appears to be.
As bob3160 says, this can backfire, but this also can be a part of a cyberwar campaign to ultimately cause an uprising of the citizens of a country. This may be being done despite the personal loss, and sacrifices, these citizens will have to make one way or another, if they choose to do this; the loss can/will be tragic, and that, furthermore, dire unforeseen consequences can/will occur due to this strategic decision.
Avast is being used, then, to apply this sort of international pressure, unfortunately. It is tragic, in a way, that a smaller player in the world arena cannot say no to this scenario, as they, like everyone else, has to comply with the rules in place, whether they agree with them or not.
The common user of Avast! is the biggest loser here. I do not know if this applies, but if Avast! chose to ignore the embargo, would they effectively be put out of business?
If that were to happen, then the loss would be enormous.