New US sanctions target Iran's refined petroleum imports for first time

The United States is for the first time imposing sanctions designed to hit Iranian imports of refined petroleum products including gasoline.

The measures announced Tuesday against seven companies supplying Iran – including the Venezuelan giant PDVSA and an Israeli shipping firm – are seen by some foreign-policy analysts as the Obama administration’s response to Capitol Hill critics who say the US has been slow to get tough on Iran in a meaningful way.

The US action was announced the same day the United Nations’ nuclear watchdog agency, the International Atomic Energy Agency, circulated a report claiming continued progress in Iran’s nuclear enrichment program. The report, to be reviewed at an IAEA meeting next month, also cites evidence that Iran diverted elements of its nuclear program to research in military applications as recently as last year. 

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The US has imposed a series of sanctions on Iran in the past – the most recent following the UN Security Council’s passage of a fourth sanctions resolution against Iran last June. But the focus of those measures has been Iranian companies, banks, and individuals found to be associated with the country’s nuclear program.

The measures announced Tuesday by Deputy Secretary of State James Steinberg target seven foreign entities selling products such as gasoline to Iran.

“All of these companies have engaged in activities related to the supply of refined petroleum products to Iran, including the direct supply of gasoline,” Deputy Secretary Steinberg said.

Other firms cited, in some cases joint ventures with Iranian companies, were from the United Arab Emirates, Monaco, Singapore, and Jersey, a British crown dependency off the coast of France.
Efforts to weaken Iran's economy

The new measures suggest a shift toward efforts to weaken the Iranian economy as a means of pressuring Iran to halt its uranium enrichment program. The US and other Western powers accuse Iran of pursuing its nuclear program, including enrichment, with the goal of developing a nuclear weapon. Iran insists its objectives are purely peaceful and aimed at developing civilian nuclear power.

Iran is a major producer of oil, but is weak on petroleum refinery capacity and must import about 40 percent of its gasoline. Continued…