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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters U.S. warns Iran may face more sanctions Tue Oct 6, 2009 4:08pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Susan Cornwell and David Lawder WASHINGTON/ISTANBUL (Reuters) - The United States and its allies may impose sweeping sanctions on Iran if Tehran fails to allay fears it is building nuclear weapons, a U.S. official said on Tuesday. Iran, however, dismissed the threat, saying previous sanctions against it had been ineffective and arguing that foreign companies recognized the benefit of trading with the oil-rich nation. Stuart Levey, the U.S. Treasury's under secretary for terrorism and financial intelligence, told U.S. lawmakers that Washington was working to build as much international support as possible for a "comprehensive" plan of stronger sanctions. "It (the U.S. strategy) takes into account that no single sanction is a 'silver bullet' -- we will need to impose measures simultaneously in many different forms in order to be effective," Levey told the Senate Banking Committee. President Barack Obama has warned Iran to come clean about its nuclear program, which Washington fears is a cover to build atomic weapons, or face "sanctions that bite." Tehran says its program is designed only to produce electricity. Iran last week agreed with six world powers -- the United States, Russia, China, Britain, France and Germany -- to allow inspectors access to its newly disclosed uranium enrichment plant near the holy city of Qom. Washington has had restrictions on U.S. business dealings with Iran for a long time. But the disclosure of the plant -- it is the second such facility acknowledged by Iran -- has prompted both Congress and the Obama administration to take a closer look at expanded sanctions in the standoff. "Because financial measures are most effective when imposed as part of a broad-based effort with support of the largest possible international coalition, we are working closely with our allies as we put together this strategy," Levey said. He was not specific about possible measures. Publicly, officials are reluctant to discuss the steps they are considering, wary of creating an impression that they view diplomacy as merely a smokescreen for eventual sanctions. SANCTION OPTIONS Iran's finance minister said U.S. sanctions and pressure on international banks to cut ties with Tehran have had little effect, as many foreign companies find trading with Tehran to be profitable. "It's not necessary for us to circumvent the sanctions. Our partners will find a way to come forward," Shamseddin Hosseini told reporters on the sidelines of an International Monetary Fund and World Bank meeting in Istanbul. "Therefore after many years of sanctions, Iran continues to progress to and do its business. There are many secure ways to do business." The White House is being urged to consider a wide range of options, including choking off gasoline supplies. That approach is favored by Senate banking panel chairman Chris Dodd, who said he would move forward this month with legislation. Hosseini said sanctions on refined petroleum products would have little effect on Iran's economy because it can increase domestic refinery output and reduce consumption. Continued... 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