February 6, 2012
Obama extends sanctions to Central Bank of Iran
President Obama sanctioned parties dealing with Iran’s Central Bank.
The executive order issued by the White House Sunday and made public Monday cuts off Iran’s economy from the United States entirely by expanding existing sanctions to include those who deal with Iran’s Central Bank, forcing interlocutors to choose between the two economies.
The intended effect is to isolate Iran from much of the world’s developed economy.
A letter to Congress accompanying the order notes that it comports with the enhanced sanctions law passed by Congress in December, and underscores its expansive intent, targeting entities determined “to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to the order.”
The Obama administration had issued a warning in November that such sanctions were forthcoming. A key factor in timing the sanctions was the effort to coordinate with other nations to avoid a spike in oil prices.