nuclear-news

Sanctions against Iran’s central bank may bring about global economic repercussions

What Happened to Obama’s Nuclear Option? In a showdown over how to deal with Iran, it appears that the president has bowed to Congress. Mother Jones. By Hamed Aleaziz  Dec. 16, 2011 Now that the essential Defense Authorization Bill has
passed through the House and Senate, it carries with it a hard-line amendment that would level sanctions against Iran’s central bank. The policy, experts say, could not only inflict pain on Iran for its nuclear weapons ambitions, but also potentially cause global economic
repercussions. The White House has been against the amendment. Congress overwhelmingly voted for it.

If signed into law by President Obama, the new sanctions will be enforced against foreign institutions in Europe and around the world that do business with the Central Bank of Iran. (American companies
are already forbidden to do so.) Because the CBI acts as negotiator
for Iranian oil prices, these sanctions could force banks and
companies worldwide to make a choice: terminate participation in the
oil trade with Iran or face a penalty from the US. After strong
pushback from the White House, which believes the sanctions could be
too economically destabilizing, congressional leaders agreed to add a
waiver  that, according to Foreign Policy’s Josh Rogin, would give the
“president slightly more flexibility in waiving some of the sanctions
on national security grounds.” Apparently it may be just enough wiggle
room: The White House announced  on Wednesday that the president would
not veto the bill, despite prior threats  that he would.

But the amendment, sponsored by Senators Mark Kirk (R-Ill.) and Robert
Menendez (D-NJ), has some experts worried about its potential
impact….. http://motherjones.com/politics/2011/12/iran-sanctions-obama

December 16, 2011 - Posted by Christina Macpherson | Iran, politics, politics international, USA