June 25, 2010 9:38 AM

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US approves sweeping new Iran sanctions

The US Senate overwhelmingly approved a sweeping new package of sanctions on Iran, aiming to force Tehran to halt its suspected nuclear weapons programme by choking off its gasoline imports. Lawmakers voted 99-0 in favour of the legislation, which was expected to clear the House of Representatives later in the day and go to President Barack Obama to sign into law, ramping up economic pressure on the Islamic republic. The bill, which builds on new UN Security Council and European Union sanctions, aims to dry up Iran's imports of refined petroleum products, curb investment in its energy sector, and restrict its access to global banking. World powers led by Washington have accused the Islamic republic of seeking to build nuclear weapons and demanding it freeze its uranium enrichment activity, which can be a key step towards developing an atomic arsenal. The bill would deny access to US markets to firms that provide Iran with refined petroleum products, like gasoline or jet fuel, that the oil-rich nation must import to meet demand because of a weak domestic refining capability. The measure also takes aim at firms that do business in Iran's energy sector, including non-US companies that provide financing, insurance, or shipping services.

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