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U.S. Targets Iran's Central Bank

(Wall Street Journal) Carole E. Lee and Keith Johnson - President Barack Obama signed into law on Saturday sanctions against Iran's central bank, marking the sharpest economic confrontation between Washington and Tehran yet and potentially stoking tensions in the Persian Gulf. The measure, which Congress passed as part of the 2012 National Defense Authorization Act, penalizes foreign financial institutions that do business with Iran's central bank, Bank Markazi. Mr. Obama has some flexibility in determining the strength and scope of the sanctions, which are intended to make it more difficult for Iran to sell its oil. But the administration intends to move forward with implementing the law in a way that doesn't damage the global economy, senior administration officials said. The toughest measures won't take effect for at least six months, including transactions from governments purchasing Iranian oil and selling petroleum products. The president said in a signing statement Saturday that the Iran section of the bill, as well as several others, "would interfere with my constitutional authority to conduct foreign relations" because it forces him "to take certain positions in negotiations or discussions with foreign governments." He said that "should any application of these provisions conflict with my constitutional authorities, I will treat the provisions as nonbinding."
2012-01-02 00:00:00
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