BICOM

US President Barack Obama said yesterday that Iran would face the toughest possible sanctions over its involvement in the alleged plot to assassinate the Saudi Arabian ambassador to the US. President Obama said during a news conference that the US would not take any options off the table in dealing with Iran, a known phrase used by the administration when referring to the option of a military strike against Tehran. “This is part of a pattern of dangerous and reckless behaviour by the Iranian government,” Obama said about the Iranian plot.

David Cohen, the US Treasury undersecretary for terrorism and financial intelligence, told the Senate Banking Committee that officials were “looking very actively” at steps that might be carried out if other nations could be persuaded to follow suit. Such steps could be further sanctions against Iran that would aim to isolate the Bank Markazi, or central bank, from the world economic system by barring any firm that deals with it from doing business with US financial institutions. This would make it far more difficult for Iran to sell crude oil, which funds much of the government’s activities. The blacklisting of this bank would be effective, but only if other world powers joined in. The US administration would also have to overcome arguments that the action would harm ordinary Iranians and damage oil markets.

Meanwhile, Saudi Foreign Minister Saud al-Faisal said that evidence showed that Iran is responsible for the plot and that Iran has a history of being involved in political affairs among the Arab states.