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European Union Intensifies Sanctions on Iran European Union Intensifies Sanctions on Iran
(35 minutes later)
BRUSSELS — The European Union toughened sanctions against Iran on Monday because of the disputed Iranian nuclear program, banning trade in sectors like finance, metals and natural gas, and making business transactions in many other areas far more cumbersome.BRUSSELS — The European Union toughened sanctions against Iran on Monday because of the disputed Iranian nuclear program, banning trade in sectors like finance, metals and natural gas, and making business transactions in many other areas far more cumbersome.
The union’s foreign ministers agreed to the measures, the most far-reaching since the union slapped a ban on oil imports in July, at a regular meeting in Luxembourg. The European Union’s foreign ministers agreed to the measures, the most far-reaching since it slapped a ban on oil imports in July, at a regular meeting in Luxembourg.
In a joint statement, the ministers expressed “serious and deepening concerns over Iran’s nuclear program” and said Iran “is acting in flagrant violation of its international obligations.”In a joint statement, the ministers expressed “serious and deepening concerns over Iran’s nuclear program” and said Iran “is acting in flagrant violation of its international obligations.”
The decision to intensify pressure on Iran comes amid growing evidence that sanctions aimed at forcing the country to suspend its uranium enrichment activities have begun to inflict serious damage to its economy. The decision to intensify pressure on Iran comes amid growing evidence that sanctions aimed at forcing Iran to suspend its uranium enrichment activities have begun to inflict serious damage to its economy.
“We want to see a negotiated agreement,” said Catherine Ashton, the European Union’s foreign policy chief who represents six major powers including the United States, before the meeting. “But we will continue to keep up the pressure,” she said, adding that the sanctions policy “is important because it’s quite clearly having an effect.” “We want to see a negotiated agreement,” said Catherine Ashton, the Union’s foreign policy chief who represents six major powers including the United States, ahead of the meeting. “But we will continue to keep up the pressure,” Ms. Ashton said, adding that the sanctions policy “is important because it’s quite clearly having an effect.”
Iran is suffering acute inflation  from the weakness of the rial, and economists have pointed to this as evidence that the sanctions, which have severely restricted Iran’s ability to sell oil and do international banking transactions, are having a profound impact. Iran is suffering acute inflation from the weakness of the rial, the national currency, which lost 40 percent of its value against the dollar this month. Outside economists have pointed to Iran’s currency troubles as evidence that the sanctions, which have severely restricted Iran’s ability to sell oil and do international banking transactions, are having a profound impact.
New signs of problems were reported last Friday, with severe drops in Iran’s monthly oil production, automotive production and the number of foreign commercial ships docking in Iranian ports.
The sanctions were necessary as a result of a “continued failure to satisfy the world that the program was for peaceful purposes,” said William Hague, the British foreign secretary.The sanctions were necessary as a result of a “continued failure to satisfy the world that the program was for peaceful purposes,” said William Hague, the British foreign secretary.
But Carl Bildt, the Swedish foreign minister, emphasized the need for a more intensive diplomatic effort alongside sanctions.But Carl Bildt, the Swedish foreign minister, emphasized the need for a more intensive diplomatic effort alongside sanctions.
“I think there are voices that sounds like they want a war,” Mr. Bildt said. “We don’t want war,” he said. A diplomatic solution continued to be “under discussion although not always necessarily in the public domain,” he said. “I think there are voices that sound like they want a war,” Mr. Bildt said. “We don’t want war.” A diplomatic solution continued to be “under discussion although not always necessarily in the public domain,” he said.
Iran has insisted that the sanctions will have no effect on the country’s uranium enrichment program, which the Iranians have called peaceful and legal but the West has called a guise for the development of nuclear weapons capability.Iran has insisted that the sanctions will have no effect on the country’s uranium enrichment program, which the Iranians have called peaceful and legal but the West has called a guise for the development of nuclear weapons capability.
The latest package of measures makes it far more complicated for Europeans to do deals with Iran by requiring banks to apply for permission from governments.The latest package of measures makes it far more complicated for Europeans to do deals with Iran by requiring banks to apply for permission from governments.
The European Union “agreed to prohibit all transactions between European and Iranian banks, unless authorized in advance under strict conditions with exemptions for humanitarian needs,” according to an official statement about the action.The European Union “agreed to prohibit all transactions between European and Iranian banks, unless authorized in advance under strict conditions with exemptions for humanitarian needs,” according to an official statement about the action.
The statement said that the union had also “decided to strengthen the restrictive measures against the Central Bank of Iran.” The statement said that the European Union also had “decided to strengthen the restrictive measures against the Central Bank of Iran. Further export restrictions have been imposed, notably for graphite, metals, software for industrial processes, as well as measures relating to the ship building industry.”
“Further export restrictions have been imposed, notably for graphite, metals, software for industrial processes, as well as measures relating to the shipbuilding industry,” the statement said. The European Union ministers also warned that they would take further diplomatic and economic steps if the government in Tehran failed to quell concerns over its nuclear program. Their statement said they remained “determined to increase, in close coordination with international partners, pressure on Iran.”
The new European Union sanctions on Iranian natural gas, at least, had been anticipated by Iran, where the state media said the authorities had preemptively ordered a halt to natural gas exports to Europe.
“In order to confront the boycott of gas by the European Union, Iran will shut its gas pipelines just like it did with the oil pipelines, based on a preventive sanction plan by the parliament,” the semiofficial Mehr news agency quoted Naser Sudani, the deputy chairman of the parliament’s Energy Commission, as saying.
Mr. Sudani was quoted by Mehr as saying that the planned boycott of Iranian gas showed that the boycott of Iranian crude by the European Union had failed.
In the prelude to July oil sanctions by the European Union, Iranian officials said they had pre-emptively had stopped selling oil to Spain, Italy and Greece, the largest European clients for Iranian crude back then.
Mr. Sudani was quoted as saying Iran had no concern about selling natural gas. “Iran has several ways to consume its gas, and Iran’s gas will not remain unused,” he was quoted as saying.
While traveling in Baku, Azerbaijan, Iran’s foreign minister, Ali Akbar Salehi, said that the sanctions would have no “lasting effect” on the Iranian economy.
“Iran is a big country, and according to the World Bank, the Iranian economy has a purchasing power $1 trillion. The Western sanctions cannot affect our economy that much,” he told the state Islamic Republic News Agency.
Iran’s supreme leader, Ayatollah Ali Khamenei, who has described the Western sanctions as economic warfare by Iran’s enemies and has vowed to never capitulate to them, said the latest sanctions were nothing new.
“Creating instability is among the arrogant powers’ insidious policies,” the semiofficial Fars news agency quoted the ayatollah as saying during a speech in Shirvan, in eastern Iran. He praised Iran’s “exemplary political stability and tranquillity.”
Talking to an enthusiastic crowd broadcast on state television, Ayatollah Khamenei said that Iran’s enemies should be witness to the “energetic and cheerful congregation” in front of him. “The enemies wanted to make our people depressed and exhausted through their sanctions,” he said. “Our nation’s will and resolve to defend the ruling Islamic system should be a lesson to them.” 

James Kanter reported from Brussels, and Thomas Erdbrink from Tehran. Rick Gladstone contributed reporting from New York.