From Reuters, Mon Jun 9, 2008:
BRUSSELS (Reuters) - The European Union and the United States will warn Iran on Tuesday they are ready to go beyond agreed U.N. sanctions if it shuns demands to suspend sensitive nuclear work, according to a draft summit communique.
The draft...raises the possibility of a crackdown on Iranian banks, the area where Washington has long urged the EU's 27 states to apply more pressure on Tehran.
"We are ready to supplement those (U.N. Security Council) sanctions with additional measures...We will continue to work together ... to take steps to ensure Iranian banks cannot abuse the international banking system to support proliferation and terrorism..."
...The U.N. Security Council passed a third sanctions resolution against Iran in April and Washington has pressed the EU to deny targeted Iranian banks access to the international financial system.
EU diplomats had said in recent weeks the bloc was ready to go beyond the sanctions, pointing to rigorous applications in the past of travel bans and asset freezes on Iranian officials as proof that the bloc can take a tough line.
They say the EU is preparing an asset and funds freeze on Iran's biggest bank, state-owned Bank Melli, but that it first wants to see how Tehran responds to a new offer of incentives by major powers for it to suspend uranium enrichment.
EU foreign policy chief Javier Solana is due to take that offer to Tehran before the end of the month as part of carrot-and-stick diplomacy known as the "dual-track" strategy....
...U.S. Secretary of State Condoleezza Rice said last month the United States would "aggressively" impose more sanctions on Iran as long as it refused to give up nuclear work.