The story referred to in the Haaretz report appears on page 1 of Saturday's National Post (they don't publish on Sundays). It is only a "denial" story, most assuredly NOT a retraction, and it contains the same quote referenced in the Haaretz report, so it's likely the same story.
http://www.canada.com/nationalpost/news/story.html?id=38b84a95-622e-4830-9a57-ed004fe805ec&k=31543Iranian embassy denies dress code
Chris Wattie; with files from Allan Woods, National Post, with files from CanWest News Service
Published: Saturday, May 20, 2006
Several experts are casting doubt on reports that Iran had passed a law requiring the country's Jews and other religious minorities to wear coloured badges identifying them as non-Muslims.
The Iranian embassy in Otttawa also denied the Iranian government had passed such a law.
A news story and column by Iranian-born analyst Amir Taheri in yesterday's National Post reported that the Iranian parliament had passed a sweeping new law this week outlining proper dress for Iran's majority Muslims, including an order for Jews, Christians and Zoroastrians to wear special strips of cloth.
... Hormoz Ghahremani, a spokesman for the Iranian embassy in Ottawa, said in an e-mail to the Post yesterday, "We wish to categorically reject the news item. "These kinds of slanderous accusations are part of a smear campaign against Iran by vested interests, which needs to be denounced at every step."
http://www.canada.com/scripts/frontpage.aspx?name=National+Post&thumb=false