By Robert M Cutler
MONTREAL - The financial sanctions against Iran signed into law by United States President Barack Obama 10 days ago are having deeper financial effects than previous measures and highlight the regime's domestic political weakness.
Senior US officials will seek to implement the sanctions without damaging the global economy. A speculative rise in the price of oil could not only damage the tepid global economic recovery but also benefit Teheran's revenues in the short term.
The sanctions package in effect gives non-US firms the choice between doing business with the Iranian or with the American financial sector. If its provisions were to be implemented fully, any foreign financial institution (including even foreign central banks)
that transacted or facilitated purchases of Iranian oil would also be at risk of penalty.
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