The Obama administration is preparing new sanctions on companies and individuals involved in Iran’s ballistic missile programme just weeks before the nuclear deal with Iran is due to be implemented.
The Treasury department is planning new designations in response to two ballistic missile tests that Iran has conducted since the nuclear agreement was signed in July, a US official said.
If introduced, the sanctions would present a delicate diplomatic test for the nuclear agreement with Iran, which involves substantial reduction in sanctions on Tehran in return for significant restrictions on its nuclear programme. Iran has warned that new US sanctions would be a violation of the nuclear deal.
US officials provided no details on the potential new sanctions. The Wall Street Journal reported on Wednesday that the Treasury department would target around a dozen people and companies in Iran, the United Arab Emirates and Hong Kong that it believes have been involved in Iran’s ballistic missile programme.
The sanctions would freeze any US assets of the individuals and companies, bar Americans from doing business with them and exclude them from the US financial system.
According to US officials, Iran conducted separate missile tests in October and November, while a United Nations panel of experts has already confirmed the October test. Such missile launches are a violation of a UN Security Council resolution which will be withdrawn once the nuclear deal is implemented.
The US Navy also said on Wednesday that Iran had conducted a “highly provocative” rocket test near its warships passing through the Strait of Hormuz.
The administration has come under heavy pressure to take action against Iran over the missile tests from Congress, especially from members who were already highly critical of the nuclear agreement.
“The failure to impose consequences on Iran for its violation sets a dangerous precedent before implementation of the nuclear agreement when sanctions are lifted and the leverage shifts to Iran,” Bob Corker, the Republican chair of the Senate foreign relations committee, said earlier this month. “With inaction over the missile tests….. the nuclear deal is getting off to a terrible start.”
Iranian missile tests are such a sensitive issue in Washington because US officials believe they could be used to carry nuclear warheads.
The sanctions and the Iran missile tests are not the only potential stumbling blocks towards implementing the nuclear agreement.
European officials have privately complained to the Obama administration that proposed legislation to tighten visa rules could violate the nuclear agreement because they would force any European executive who has been to Iran to apply for visa in order to visit the US.