New tough sanctions on Iran

From DEBKAfile October 25, 2007:

Washington is set to unveil a new package of extra-tough sanctions for Iran

It will be announced jointly by secretary of state Condoleezza Rice and treasury secretary Henry Paulson and include branding Iran’s Revolutionary Guards Corps proliferators of weapons of mass destruction and the al Qods Brigade sponsor of terrorists.

These steps are unprecedented. DEBKAfile’s Iranian sources recall that the Islamic regime announced in advance that approval of these measures would be deemed tantamount to an American declaration of war on Iran and call forth retaliation. Tehran would target US interests in the Persian Gulf, Iraq and Afghanistan or Israel by means of Special Groups, i.e. Iran’s foreign intelligence networks, Hizballah or Hamas.

DEBKAfile’s sources reveal that these reprisals may be delayed some days because of a profound power struggle taking place in Iran’s leadership. However, since the supreme ruler, Ayatollah Ali Khamenei is directly affected as commander-in-chief of Iran’s armed forces, including the IRGC and its al Qods Brigade, Tehran cannot afford to let Washington’s accusations go unanswered.

The new sanctions package includes US financial penalties for any world firms trading with the Revolutionary Guards. They would apply to more than 1,000 companies in Europe, the Middle East, the Persian Gulf and Asia. Our Iranian sources note that since IRGC-owned companies control more than 35 percent of Iran’s economic activities, the new sanctions will have a crippling effect on its national economy. This is already hard hit by Washington’s systematic blockage of Iran’s dealings with international banks, which has left Tehran seriously short of cash flow, foreign currency and basic commodities.

According to DEBKAfile’s sources, Iran very recently sent Indonesia an “emergency appeal” for gasoline and heavy oil, because it has run out of currency to pay for imported refined oil products. Tehran offered to reward Jakarta with a concession for building big new oil refineries, which Iran lacks.

Indonesia has not yet replied. Its government must take into account that no serious world oil enterprise would be willing to cooperate in a refinery project in Iran for fear of a backlash from the American boycott.