The first round of penalties on the Central Bank go into effect Feb. 29, and would prohibit any foreign financial institution from conducting business in the United States if Obama concludes that it has conducted or facilitated a significant financial transaction with the Central Bank or other sanctioned Iranian financial institutions.
Sen. Bob Menendez, D-N.J., a chief sponsor of the sanctions, met with David Cohen, the Treasury Department’s undersecretary for terrorism and financial intelligence, and said the administration was eager to press ahead despite reservations last year that the penalties could drive up oil prices and benefit Iran’s economy.
“I have no sense that they’re looking to get an extension,” Menendez said in an interview. “The administration shares with us that this is our best hope of deterring Iranian action and their march to nuclear weapons.”
Panetta and lawmakers insist the sanctions are taking an economic toll on Iran, reflected in their erratic response. But Israel is not speaking with one voice on the issue. Israeli Prime Minister Benjamin Netanyahu said the sanctions haven’t been effective yet, while his defense minister and vice premier said the penalties are strong and have the Iranians panicking.
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