WASHINGTON (AP) -- Turning the screw on Iran and its nuclear program, the Obama administrationimposed new sanctions Monday on Iran's currency and auto industry, seeking to render Iranian money useless outside the country and to cut off the regime from critical revenue sources.
The executive order from President Barack Obama broadens what is already a concerted and multifaceted sanctions campaign aimed at crippling Iran's economy, forcing it to comply with international demands that it prove its nuclear program is peaceful. The U.S. believes Iran is working to develop nuclear weapons, a charge that Iran denies.
Officials described the move as part of a dual-track effort to offer meaningful negotiations to the Iranian regime while continually upping the economic stakes.
"Even as we intensify our pressure on the Iranian government, we hold the door open to a diplomatic solution that allows Iran to rejoin the community of nations if they meet their obligations. However, Iran must understand that time is not unlimited," said White House press secretary Jay Carney, adding that more sanctions would be levied if the regime doesn't change course.
The new sanctions marked the first time Iran's currency, the rial, has been targeted directly with sanctions, the White House said. The sanctions apply to foreign financial institutions that purchase or sell significant amounts of the rial, as well as to those who hold significant amounts of the rial in accounts outside Iran.
Senior administration officials said the sanctions were designed to make the rial essentially unusable outside of Iran. The hope is that banks and businesses holding Iranian currency will dump the funds, making the rial weaker. The value of the rial has dropped by half since the start of 2012, the White House said.
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