USA/IRAN: U.S. imposes new sanctions on Iran

Washington slaps sanctions on more than 20 Iranian companies, major banks and individuals as well as the defense ministry, in a bid to pressure Tehran to halt its nuclear program and curb its "terrorist" activities. Ratcheting up the pressure on Tehran, the United States on Thursday (October 25) designated Iran's Revolutionary Guard Corps a proliferator of weapons of mass destruction and its elite Qods force a supporter of terrorism. In total, Washington slapped sanctions on more than 20 Iranian companies, major banks and individuals as well as the defense ministry, in a bid to pressure Tehran to halt its nuclear program and curb its "terrorist" activities. "Today, Secretary Paulson and I are announcing several new steps to increase the costs to Iran of its irresponsible behavior," said Secretary of State Condoleezza Rice, who made the announcement alongside Treasury Secretary Henry Paulson. But Rice said the United States was committed to a diplomatic solution with Tehran and urged it to accept an offer made by major powers last year for Iran to give up sensitive nuclear work in exchange for incentives, including direct talks with Washington. "We will be open to the discussion of any issue. But if Iran's rulers choose to continue down a path of confrontation, the United States will act with the international community to resist these threats," said Rice. Among the Iranian banks affected are Bank Melli, Iran's largest bank, Bank Mellat and Bank Saderat, said another senior U.S. official. Such a designation effectively bans international banks from doing business with them. Iran's state-owned bank Sepah, has already been the subject of UN Security Council sanctions. The United States accuses the elite Qods force of arming and training militants in Iraq who in turn attack U.S. forces. Tehran charges that Washington has destabilized Iraq. It also says the Qods is providing "material support" for Hizbollah in Lebanon, the Taliban in Afghanistan and Hamas in the Palestinian Territories The Bush administration had been considering the new measures for months but there had been bureaucratic infighting over when and how far to go with the sanctions. It is the first time the United States has sought to take such punitive measures against another country's military and opposed by allies like Russia who believe dialogue rather than more punishment or military action is the way forward. Talk of U.S. military action has been more intense in recent months, particularly from U.S. conservatives who would like to see U.S. President George W. Bush act against Iran before he leaves office in January 2009. But U.S. Secretary of State Condoleezza Rice, while stressing that the president keeps "all options on the table", has insisted that the impasse with Iran can be resolved diplomatically through more financial pressure. U.S. Treasury Secretary Henry Paulson said: "Today we are taking additional steps to combat Iran's dangerous conduct and to engage financial institutions world wide to make the most informed decisions about those with whom they choose to do business." The United States is also pushing for a third U.N. Security Council sanctions resolution against Tehran over its nuclear program but veto-wielding China and Russia oppose such a move. The West believes Iran is seeking to build an atomic bomb while Tehran says its nuclear program is for peaceful power purposes. The Revolutionary Guard Corps has about 125,000 members and is the most important wing of Iran's military. It also has sprawling financial concerns and U.S. officials says it uses these companies to buy nuclear technology.

ITN Source | October 26, 2007

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