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    Monday, July 2, 2007

    House pushes sanctions as Iran's fuel riots spread

    WASHINGTON — Congress is pushing legislation that would pressure U.S. allies to sever gasoline exports to Iran as fuel riots spread in the Islamic republic.

    House members have introduced a bill that would impose sanctions on companies that sell gasoline or other fuel to the Teheran regime. Under the bill, the proposed sanctions, meant to ban violators from doing business in the United States, would take effect in 2008, Middle East Newsline reported.

    "Our goal must be zero foreign investment," House Foreign Relations Committee chairman Rep. Tom Lantos said.

    The legislation was introduced by Reps. Mark Kirk, a Republican from Illinois, and Robert Andrews, a New Jersey Democrat, In 2005, the two House members established the Iran Working Group to examine U.S. options to Iran's nuclear program.

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    Congressional sources said efforts to pass the legislation, entitled "Iran Sanctions Enhancement Act of 2007," would be accelerated amid fuel riots in Iran. The riots were sparked by a decision to increase the price of fuel and ration gasoline.

    Under the bill, U.S. sanctions could be imposed on any company or individual who provides or helps Teheran import refined petroleum resources. The legislation could result in sanctions against gasoline brokers, tankers and insurers.

    "As Iran continues to defy the UN Security Council and International Atomic Energy Agency, we need to explore new economic sanctions to augment our diplomacy," Kirk, a member of the State-Foreign Operations Appropriations Subcommittee, said. "Legislation targeting gasoline imports offers the best way for IAEA [International Atomic Energy Agency] safeguards to succeed."

    Most of Iran's gasoline imports come from Gulf Arab states and India, brokered by the Dutch trading house Vitol. Most of the gasoline tankers to Iran have been insured by Britain's Lloyds of London.

    "An international restriction on the supply of gasoline would serve as a critical diplomatic tool to deny Iran the ability to further its efforts to acquire nuclear weapons," Andrews said.

    The Bush administration has not staked a position on the legislation. But officials have raised the prospect that U.S. allies would ignore the gasoline embargo on Iran.

    "We need to do everything that we can to continue to raise the stakes in Iran in terms of its nuclear program," State Department spokesman Tom Casey said. "We are in the process now of looking at what additional measures we can add."

    Iran has been rocked by more than a week of riots sparked by gasoline rationing. Over the weekend, Iranian leaders defended the decision.

    "The [gasoline rationing] plan's success depends on national determination," President Mahmoud Ahmadinejad said on June 29.

    Teheran has also recruited top clerics to support the plan. In a televised sermon, Ayatollah Ahmad Jannati expressed support for rationing.

    "The huge oil asset should be used for reconstruction," Jannati said.

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