House Passes Iran Sanctions Bill

With a 412 – 12 ruling, the House passed a bill that would allow the US government to sanctions on foreign businesses who deal gasoline to Iran.

The move hopes to cripple the Iranian economy so that they won’t develop a nuclear program.

Rawstory says:

 

The measure would empower US President Barack Obama to effectively block firms that supply Iran with refined petroleum products, or the ability to import or produce them at home, from doing business in the United States.

“The prospect of a nuclear-armed Iran is the most serious and urgent strategic challenge faced by the United States, and we must use all of the diplomatic means at our disposal — including tougher sanctions — to prevent that from becoming a reality,” said Democratic Representative Howard Berman.

Rep. Ron Paul and another congressman opposed the bill, saying that it would incite hatred in the Iranian people, failing to achieve its intended results, says Reuters:

 

There is concern the legislation could backfire on the United States if Iranian citizens blame America for supply shortages and higher gasoline prices that would likely result.

“There is nobody in the Iranian government … that’s not going to get their gasoline,” said Representative Earl Blumenauer. “It’s going to be impactful on the people of Iran.”

“This will unify the Iranian people against us,” Representative Ron Paul said.

Some energy experts have said fuel sanctions on Iran would raise prices but not stop supplies because the country has porous borders and a history of smuggling petroleum products.

The Financial Times reports that the Senate is looking to pass a bill like this as well:

 

The measures are also backed by 77 out of 100 senators, but their future remains uncertain. The Obama administration has reservations about the extraterritorial reach of sanctions aimed at companies such as Vitol, a Swiss-based energy trader, and Lloyd’s of London, which insures shipments to Iran.

However, amid disappointment with the results of engagement with Tehran and growing disbelief at Iran’s insistence that its programme is purely peaceful, the administration is moving towards multilateral action against Iran, both inside and outside the United Nations Security Council.

“I don’t think anyone can doubt that our outreach has produced very little in terms of any kind of positive response from the Iranians,” said Hillary Clinton, US secretary of state.

In the latest of a series of allegations about military links to the Iranian programme, a document published this week in The Times of London detailed experiments related to initiating a nuclear explosion. Iran insists its programme is purely peaceful.

Senior US officials now predict a new round of sanctions, and the White House last week commended the European Union for its readiness to impose extra measures.