President Barack Obama is leveling new sanctions on banks in China and Iraq that the White House says have helped Iran evade international sanctions.
The new penalties target China\’s Bank of Kunlun and Iraq\’s Elaf Islamic Bank. In a statement, Obama said the sanctions make clear that the US will expose any financial institution that assists "the increasingly desperate Iranian regime" to access the international financial system.
"By cutting off these financial institutions from the United States, today’s action makes it clear that we will expose any financial institution, no matter where they are located, that allows the increasingly desperate Iranian regime to retain access to the international financial system," the president said in the statement.
Obama is also expanding sanctions on the purchase or acquisition of Iranian petrochemical products. The sanctions are authorized in part for those who provide support to the National Iranian Oil Company and the Central Bank of Iran.
The election year announcement comes as Obama aims to show he is being tough on Iran amid criticism from Republican rival Mitt Romney.
"Since taking office, we have presented the Iranian government with a clear choice: come in line with your international obligations and rejoin the community of nations, or face growing consequences," Obama said.
"With these actions, we are once again reaffirming our commitment to hold the Iranian government accountable for its actions. The United States remains committed to a diplomatic solution, but the onus is on Iran to abide by its international obligations. If the Iranian government continues its defiance, there should be no doubt that the United States and our partners will continue to impose increasing consequences."