European Union states agreed today to impose new sanctions against Iran over its refusal to meet demands to curb its nuclear programme.
But the EU said the door remained open to possible talks over an international package of incentives delivered to Tehran earlier this month by EU foreign policy chief Javier Solana for Iran to suspend uranium enrichment.
The new EU sanctions, including an asset freeze on its biggest bank, are the latest attempt by the West to put pressure on Iran over the nuclear issue and will target businesses and individuals the West alleges are linked to its nuclear and ballistic programmes.
"The individuals will be banned from entering the EU and the entities will be banned from operating in the EU," said an EU official after EU ministers rubber-stamped the measures at a meeting in Luxembourg.
The EU is due to publish the names of those affected on tomorrow, but the official said Bank Melli would face an asset freeze under the moves, while the visa bans would target "very senior experts" inside Iran's nuclear and ballistic programmes.
Bank Melli has branches in Paris and Hamburg and a unit in London called Melli Bank Plc.
The EU official stressed the sanctions were based on measures agreed by the UN Security Council and that six powers - the five permanent members of the council plus Germany - still sought an answer from Iran to their incentives offer.
"We are continuing with the double-track," the official said of the carrot-and-stick policy that has until now not induced Iran to curb a nuclear programme, suspected by the West of being a cover for making an atom bomb.
The United States and the EU agreed this month they were ready to take additional steps aimed at ensuring Iranian banks could not back proliferation and terrorism.
Diplomats say there are exploratory talks in the West about the possibility of targeting Iran's energy sector with future sanctions.
Iran insists its nuclear work is a peaceful programme, but the dispute has sparked fears of military confrontation and helped push up oil prices to record highs.