BICOM

In a statement to Parliament yesterday Foreign Secretary William Hague joined other European countries and the United States in calling for increased pressure on Iran, by furthering and deepening sanctions. In a response to questions from the Shadow Foreign Secretary Douglas Alexander, Hague told the House that the UK was “looking at additional measures against the Iranian financial sector and the oil and gas sector, and the designation of further entities and individuals involved with its nuclear programme.”

In his speech Hague said it was important for Iran to change direction, and that the UK seeks a negotiated solution, but only if Iran is prepared to engaged in “serious negotiations about its nuclear programme without pre-conditions.” If not, Hague indicated that the UK with its partners would look at a range of additional measures to pressure Iran. Hague added that the assertions by Iran that their nuclear programme is wholly for peaceful purposes has been “completely discredited” by the publication of a recent International Atomic Energy Agency report on the military aspects of Iran’s nuclear programme.

In light of the latest IAEA report, the US Treasury Department is drafting new sanctions aimed at commercial banks or front companies that may be imposed this month, while the European Union is considering its own financial sanctions, according to US and European officials who spoke to Bloomberg.

Russian and Chinese officials, meanwhile, have said further sanctions would be counterproductive. Both countries remain reluctant to agree to restrictions on financial transactions, a tighter arms embargo and authority to seize cargo linked to nuclear or missile programmes. Russia seeks to resolve the dispute by lifting sanctions against Iran in stages, in return for Iranian cooperation on inspections.

Meanwhile, in Israel Prime Minister Benjamin Netanyahu said the world must act to prevent Iran from gaining nuclear weaponry. In the first official Israeli response to the IAEA report on Iran’s nuclear weapon developments, Netanyahu said, “The significance of the report (by the IAEA) is that the international community must bring about the cessation of Iran’s pursuit of nuclear weapons which endanger peace in the world and in the Middle East.” Netanyahu added that the report “corroborates” the position of the international community and of Israel that Tehran is developing nuclear weapons.