Steps to reproduce:
Connect to any of the vmware images. Do not set the web proxy.
Run JRE online installer
A dialog appears with a message that the machine is in an embargoed country.
Screenshot of the dialog and the jusched.log are attached.

JDK/JRE tested: 6u20 b74, 6u20 b76
OS/architecture: Windows
Reproducible: Always
Reproducible on machine: 10.5.34.65
Is it a platform specific regression: Y (Windows only)
Is it a new platform support: N
Is it a Regression: N

We were not able to reproduce this issue off-swan.

However, there was a report from a Oracle employee in Israel who saw this dialog.