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Slideshow Images of September Follow Reuters Facebook Twitter RSS YouTube Read Analysis: Ryan was solid, but feisty Biden won the debate | 11:12am EDT A diamond bigger than Earth? 11 Oct 2012 Biden comes out swinging at debate, clashes with Ryan | 11:07am EDT European Union wins Nobel Peace Prize | 10:39am EDT Gunmen kill Yemeni who worked at U.S. embassy in Yemen | 11 Oct 2012 Discussed 157 Democrats frustrated by Obama’s ”Big Bird” campaign turn 130 Romney to draw contrast with Obama on foreign policy 98 Biden and Ryan in high-stakes election debate Sponsored Links EU moves closer to substantial new Iran sanctions Tweet Share this Email Print Related News Eleven euro states back financial transaction tax Tue, Oct 9 2012 Analysis: Iran government likely to win battle of wills over currency Tue, Oct 9 2012 Tehran's Grand Bazaar reopens, currency trade still frozen Sat, Oct 6 2012 As rial plunges, Congress looks at expanding Iran sanctions Fri, Oct 5 2012 Iran blames economic "conspiracy" as criticism grows Fri, Oct 5 2012 Analysis & Opinion Too big to exist? Fed’s regulation czar backs limits on bank size So what is Romney’s foreign policy? Related Topics World » Middle East Turmoil » European Union flags fly in front of the European Commission headquarters in Brussels October 12, 2012. Credit: Reuters/Yves Herman By Justyna Pawlak BRUSSELS | Fri Oct 12, 2012 11:20am EDT BRUSSELS (Reuters) - The European Union provisionally approved substantial new economic sanctions against Iran over its nuclear program on Friday, with senior diplomats giving their backing to measures against Tehran's banking sector and industry. The new sanctions will have to be formally approved on Monday at an EU foreign ministers' meeting in Luxembourg before coming to effect. An EU diplomat, speaking on condition of anonymity, said the new measures include a ban on financial transactions, with some exceptions for those involving humanitarian aid, food and medicine purchases. Some other types of trade may also be allowed. EU states will also be banned from extending short-term guarantees for trade with Iran, importing natural gas from Iran and selling metals and graphites to Iran. "Coreper (a committee of EU ambassadors) agreed the sanctions package on (the) Iranian nuclear program," said the diplomat in a message to Reuters. The trade and finance measures mark a major step-up of European pressure on Tehran, amid growing concerns over its nuclear program, foundering diplomacy and threats of attack on Iranian atom installations by Israel. Iran denies its atom work has any military intentions and says it wants nuclear power for electricity supplies and medical needs. The EU is also targeting Iran's shipping industry, in an effort to curb Tehran's ability to sell oil to obtain funds and hard currency. It banned imports of Iranian oil earlier this year. New measures will ban European companies from providing shipbuilding technology and oil storage capabilities, as well as flagging and classification services to Iranian tankers. More sanctions are also being prepared in the United States. (Reporting by Justyna Pawlak; Editing by Sebastian Moffett) World Middle East Turmoil Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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