Is Iran next?

Are we sanctioning or imposing sanctions? On Slate, they record "Bush's accidential wit and wisdom." Here is the latest...

"Secondly, the tactics of our—as you know, we don't have relationships with Iran. I mean, that's—ever since the late '70s, we have no contacts with them, and we've totally sanctioned them. In other words, there's no sanctions—you can't—we're out of sanctions."—Annandale, Va., Aug. 9, 2004

What does that mean anyway?