Britain, Europe poised to toughen anti-nuclear sanctions on Iran
The European Union said Monday it was ready to issue stronger financial sanctions against Iran to discourage Tehran from developing nuclear weapons.
Word of the agreement came after British Prime Minister Gordon Brown announced at a London news conference with U.S. President George W. Bush that Britain is freezing the assets of Iran's largest bank, Bank Melli.
Brown said Britain was urging — and that Europe "will agree"— to impose further sanctions because of Iran's refusal to halt the enrichment of uranium to the point that could be used for nuclear weaponry.
The EU has not yet announced stronger sanctions but Cristina Gallach, spokeswoman for EU foreign affairs chief Javier Solana, said European foreign ministers meeting in Luxembourg on Monday were prepared to take formal action and agreed on the need for stronger sanctions.
"It is clear they are ready to move further. We will definitely take a formal decision," she said. Gallach would not speculate on the timing of a final decision.
Announcement expected soon
After the news conference with Brown, Bush's national security adviser, Stephen Hadley, told reporters that an announcement was expected Monday from the Luxembourg meeting.
Hadley and Brown's spokesman, Michael Ellam, both indicated that European nations had agreed in principle to target Iran's Bank Melli.
The United States last year accused the bank of providing services to Iran's nuclear and ballistic missile programs.
Iran denies it is trying to produce nuclear weapons with enriched uranium, saying its atomic program is aimed at generating electricity.
The UN Security Council has imposed three sets of limited sanctions against Iran for refusing to halt uranium enrichment.
Hadley said a new round of European sanctions would be a significant hardening of resolve against Tehran.
He said European foreign ministers are examining plans for sanctions on Iran's oil and gas sectors.
With files from the Associated Press
U.S. President George W. Bush and British Prime Minister Gordon Brown have promised new sanctions on Iran if the Gulf country continues to enrich weapons-grade uranium. 

At a joint press conference in London today, Brown announced that "today we will urge Europe - and Europe will agree - to take further sanctions against Iran." Britain is pressuring the European Union to freeze the overseas assets of Iran's Bank Melli, which the United States accuses of supporting Iran's missile programs. European Union spokesperson Cristina Gallach says that Europe is prepared to take action.

Iran denies its enrichment program is aimed at the creation of nuclear weapons, insisting that they will use the technology to generate electricity. In response, Brown announced that during weekend negotiations, "we put our enhanced offer on the table - including political and economic partnership and help with nuclear technology for civilian use. We await the Iranian response and will do everything possible to maintain the dialogue."

In response to the announcement, Iran has withdrawn approximately $75 billion of its European foreign assets. "Part of Iran's assets in European banks have been converted to gold and shares" said Iranian deputy foreign minister Mohsen Talaie, "and another part has been transferred to Asian banks." The Iranian government gauges its foreign exchange reserves at $80 billion.