LUXEMBOURG — European Union nations agreed Monday 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 Monday at a London news conference with President 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. “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 — and that Europe “will agree” — to also impose the new sanctions because of Iran’s refusal to halt the uranium enrichment that could be used for nuclear weaponry.
The EU has not yet announced stronger sanctions. But a spokeswoman for EU foreign affairs and security chief Javier Solana said EU foreign ministers meeting in Luxembourg on Monday were prepared to take formal action.
“It is clear they are ready to move further. We will definitely take a formal decision,” Cristina Gallach said. Gallach would not speculate on the timing of a final decision.
Bush’s national security adviser, Stephen Hadley, told reporters aboard Air Force One that an announcement was expected Monday from the Luxembourg meeting.
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.
The sanctions also could have an effect on already soaring global oil prices.
“While the sanctions are unspecified, a potential disruption in supply is what concerns the oil markets particularly with prices so close to all-time highs,” said Linda Rafield, an analyst at Platts, the energy research arm of McGraw-Hill Cos.
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.
The United States last year accused Bank Melli of providing services to Iran’s nuclear and ballistic missile programs.
The U.S. and some of its allies accuse Iran of trying to develop nuclear weapons. Iran denies that, saying its atomic program is aimed at using nuclear reactors to generate electricity.
The U.N. Security Council has imposed three sets of limited sanctions against Iran for refusing to halt uranium enrichment. The third round of U.N. sanctions passed in March introduced financial monitoring of Bank Melli and another bank with purported links to suspect Iranian nuclear activities, Bank Saderat.
Hadley said a new round of European sanctions would be a significant hardening of resolve against Tehran.
He said European foreign ministers are examining plans for sanctions on Iran’s oil and gas sectors. The measures are complex but “would be a major step forward,” Hadley told reporters aboard Air Force One.
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