Iran Nuclear Watch: United States Will Push for Economic Sanctions

US Secretary of State Condoleezza Rice has left on a tour of the Middle East with the looming nuclear crisis with Iran likely to overshadow timid efforts to rekindle the Israeli-Palestinian peace process, analysts say.

Reuters: Iran gives no sign of nuclear suspension yet: Rice

Iran has said nothing so far to suggest it plans to suspend uranium enrichment, U.S. Secretary of State Condoleezza Rice said on Monday.

Speaking to reporters as she flew to the Middle East, Rice said the foreign ministers of the five permanent members of the U.N. Security Council and Germany might meet later this week to discuss Iran’s nuclear program.

In the meantime, the United States is not waiting for the EU or the United Nations Security Council.

NY Sun: U.S. Will Push Banks To Cut All Ties to Iran

Bolstered by a new sanctions bill against Iran, Secretary of State Rice will press Arab foreign ministers tomorrow in Cairo to instruct banks in the region to cut ties to any entities contributing to Iran’s nuclear program, support for terror, or pursuit of advanced conventional weapons.

If the gambit in Cairo succeeds, it will boost American efforts to punish Iran for its defiance of international resolutions on its nuclear program. In the last 18 months, the Bush administration has quietly succeeded in pressing four large European banks, including London-based HSBC, to stop doing business with Iran.

Indeed, when the Treasury Department announced earlier this month that Iran’s Bank Saderat would be barred from American financial markets, three large Japanese banks also cut ties with the bank. Yesterday, the Iranian press announced that talks between Iran and Japan on a $2 billion deal to develop the Azadegan oil field had collapsed.

The Iran Freedom Support Act is here.

Look for Iran to either attempt to manipulate oil markets in time for the November elections or to provoke some kind of conflict. The United States will pursue economic attrition and slowly tighten the screws to the Iran and their allies’ economies.

Stay tuned as Secretary of State Rice tours the Middle East.

Captain Ed has New Iran Policy Toughens Sanctions