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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, banning trade in sectors like finance, metals and natural gas, and making other business transactions far more cumbersome. BRUSSELS — The European Union toughened sanctions against Iran over its disputed nuclear program on Monday, banning trade in industries like finance, metals and natural gas, and making other business transactions far more cumbersome.
The measures were the latest in a long series of building sanctions from Europe, the United States and the United Nations Security Council, and came as evidence of serious damage to Iran’s economy builds. The measures were the latest in a long series of sanctions from Europe, the United States and the United Nations Security Council, and were evidence of the worsening damage to Iran’s economy.
In a joint statement, European Union foreign ministers meeting in Luxembourg expressed “serious and deepening concerns over Iran’s nuclear program” and said Iran’s continued enrichment of uranium was “acting in flagrant violation of its international obligations.” In a joint statement, European Union foreign ministers, meeting in Luxembourg, expressed “serious and deepening concerns over Iran’s nuclear program.” They added that in continuing to enrich uranium, despite Western concerns that it is aiming for a bomb, Iran was “acting in flagrant violation of its international obligations.”
Ahead of the meeting, Catherine Ashton, the European Union’s foreign policy chief, said: “We want to see a negotiated agreement. But we will continue to keep up the pressure.” Ms. Ashton represents six major powers, including the United States, in nuclear talks with the Iranians. There have been five rounds since late 2010, the last of which ended in frustration in June. Ms. Ashton said contacts were set to continue with Saeed Jalili, Iran’s negotiator, in order to assess when to convene another meeting. Ahead of the meeting, Catherine Ashton, the European Union’s foreign policy chief, said: “We want to see a negotiated agreement. But we will continue to keep up the pressure.”
Iran is suffering acute inflation from the weakness of the rial, the national currency, which lost 40 percent of its value against the dollar in recent weeks. 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 make international banking transactions, are having a profound impact. Iran has been showing new signs of problems, including severe drops in Iran’s monthly oil production, automotive production and the number of foreign commercial ships docking in Iranian ports. How to contain Iran’s nuclear strength has become an issue in the American presidential race. Ms. Ashton represents six major powers, including the United States, in nuclear talks with the Iranians. There have been five rounds of discussions since late 2010, the last of which ended in frustration in June. Ms. Ashton said the major powers would keep in contact with Saeed Jalili, Iran’s negotiator, to assess when to convene another meeting.
Iran is suffering acute inflation from the weakness of the rial, the national currency, which lost 40 percent of its value against the dollar in recent weeks. 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 conduct international banking transactions, are having a profound impact. Iran has been showing new signs of problems, including severe drops in monthly oil and automotive production and in the number of foreign commercial ships docking at its ports. How to contain Iran’s nuclear ambitions has become an issue in the American presidential race.
The new European 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 new European 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 the sanctions.
“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. “I think there are voices that sound like they want a war,” Mr. Bildt said. “We don’t want war.”
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 measures make business deals between Europe and Iran far more complicated. 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.
The latest package of measures makes it far more complicated for Europeans to do deals with Iran. 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.
That also could make it far more cumbersome for Europeans to do business with Iran by requiring, for example, that traders in goods considered legitimate, like carpets, to apply for permission from their governments before they can complete the imports.
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.”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.”
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’s supreme leader, Ayatollah Ali Khamenei, who has described the Western sanctions as economic warfare, said the latest measures were nothing new.
“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. “Creating instability is among the arrogant powers’ insidious policies,” the semiofficial Fars News Agency quoted him as saying during a speech in Shirvan, in eastern Iran. He praised Iran’s “exemplary political stability and tranquillity,” adding: “The enemies wanted to make our people depressed and exhausted through their sanctions. Our nation’s will and resolve to defend the ruling Islamic system should be a lesson to them.” 
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.

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