AP, Luxemburg, June 17 (excerpts) _ European Union nations agreed on the need for a new round of sanctions to discourage Iran from developing nuclear weapons, targeting the country’s oil and gas sectors in what would be the strongest punishment yet.
British Prime Minister Gordon Brown announced earlier at a London news conference with U.S. President George W. Bush that Britain will freeze the assets of Iran’s largest bank, Bank Melli, and that the EU would target Iran’s oil and gas sectors.
“Action will start today in a new phase of sanctions on oil and gas,” Brown said Monday. “We will take any necessary action so that Iran is aware of the choice it needs to make.”
Brown said Britain was urging the EU to also impose the new sanctions because of Iran’s refusal to halt the uranium enrichment that could be used for nuclear weaponry, and that Europe would agree to do so.
Sanctions targeting Iran’s oil and gas industries could severely affect Iran’s already fragile economy. High inflation and rampant unemployment have damaged its economy, which is heavily reliant on natural resources. More than 80 percent of Iran’s revenues come from oil exports.
First word of new sanctions on Monday came from Brown’s London news conference. Later, Bush’s national security adviser, Stephen Hadley, told reporters aboard Air Force One that an announcement was expected Monday from the Luxembourg meeting.
At their joint news conference, Bush and Brown both sent a strong message to Iran that it must end its pursuit of nuclear weapons or face a tougher international response.
“Britain will urge Europe _ and Europe will agree _ to take sanctions against Iran,” Brown said.
Hadley and Brown’s spokesman, Michael Ellam, both indicated that European nations had agreed in principle to target the Iranian bank, Bank Melli.
The United States last year accused Bank Melli of providing services to Iran’s nuclear and ballistic missile programs.
“There is agreement among all EU member states to freeze assets of Bank Melli,” Ellam said.