Iranian President Mahmoud Ahmadinejad and leading challenger Mir Hossein Mousavi aren't all that different when it comes to governing, President Barack Obama says.

"I think it's important to understand that although there is amazing ferment taking place in Iran, the difference in actual policies between Ahmadinejad and Moussavi in terms of their actual policies may not be as great as advertised," he's told CNBC.

"Either way we are going to be dealing with a regime in Iran that is hostile to the US," Obama added. "We have long term interests in not having them with nuclear power and funding terrorism."

Many of those protesting in Iran might not agree with the U.S. president's analysis of Ahmadinejad and Mousavi.