United States Imposes New Sanctions on Iran

The Bush Administration imposed a series of new sanctions Iran to punish Tehran for weapons proliferation and supporting terrorism throughout the Middle East. It is aimed at the powerful Iranian Revolutionary Guard Corps, including the corps' smaller Quds Force unit, and three of the country's largest banks. The goal is to cut off 20 individuals and Iranian entities from the U.S. financial system and, indirectly, limit their access to other parts of the international economic system. U.S. officials believe the Revolutionary Guard supports terrorist groups, including Hezbollah and Hamas. The moves freeze the assets of these entities in the United States and signal to banks and companies outside the U.S. that they could be penalized if they do business with those targeted. The administration hopes to pressure Iran into giving up its uranium-enrichment program in exchange for economic and other benefits. Tehran has ignored previous economic sanctions. Iran denies that its enrichment program is aimed at acquiring nuclear bomb-making capability. Some observers say the new sanctions are aimed at undercutting the strength of restless administration hawks, who contend that Rice's diplomatic effort is not working and that Bush should consider air attacks on Iran's nuclear infrastructure before he leaves office in January 2009.The new moves won praise from the American Israel Public Affairs Committee, an influential pro-Israel group, which has been urging more vigorous action against Iran. In 1979, at the time of the Islamic revolution and the hostage crisis, the United States imposed broad economic sanctions against Iran. Since then, Washington has imposed various additional sanctions against Tehran, accusing the Iranian government of developing nuclear weapons and sponsoring or funding terrorism abroad. The sanctions block US-based oil companies from operating in Iran, giving the US a strong incentive to generalize the sanctions and block US firms' foreign competitors from operating there as well.

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