Congress backs fresh Iran sanctions

WASHINGTON -- A new package of severe sanctions on Iran's energy, shipping and financial sectors gained strong congressional support Tuesdayas lawmakers sought to ratchet up the economic pressure in hopes of halting Tehran's suspected nuclear weapons program.

House and Senate negotiators reached agreement late Monday on legislation that builds on the current penalties directed at financial institutions that do business with Iran's central bank. The new bill would impose sanctions on anyone who mines uranium with Iran; sells, leases or provides oil tankers to Tehran; or provides insurance to the National Iranian Tanker Co., the state-run shipping line.

Iranian officials criticized the latest penalties, labeling the economic pressure "warfare" and promised to retool the country's oil-dependent economy.

In a separate move, President Barack Obama used his executive authority to impose fresh sanctions on foreign banks in China and Iraq that the United States says help Iran evade the penalties. The move came as Obama's Republican rival, Mitt Romney, has argued that the president isn't tough on Iran.

The Democratic and Republican leaders in the Senate said Tuesday they expect swift passage after a House vote tentatively scheduled for Wednesday.

"It would be better to have that down on the president's desk by the end of the week," Senate Minority Leader Mitch McConnell (R-Ky.) said.

The measure has a crucial backer -- the American Israel Public Affairs Committee, the pro-Israel lobbying group -- and extensive support from Republicans and Democrats.

"That will go a long way," Sen. Lindsey Graham (R-S.C.) said of the AIPAC support. Sen. Bob Menendez (D-N.J.) who pushed for the shipping sanctions, called the bill a good move at a critical time.

The United States and Europe argue that depriving Iran of its oil income thwarts its suspected drive for nuclear weapons. Iran has exported 2.5 million barrels of oil a day to Europe, China, India, Japan and South Korea. U.S. officials say the penalties have reduced Iran oil exports to less than 1.8 million barrels a day, costing Tehran about $63 million daily.