In pursuit of its goal to steadily tighten the economic noose around Iran’s oil export industry, US President Barack Obama has announced that his government would — over and above the sanctions already imposed under the National Defence Authorisation Act— add a further layer of punitive regulation targeting those who continued to maintain ties with Iran.

Institutions like Bank of Kunlun in China and Elaf Islamic Bank in Iraq would be cut off from transactions with U.S. institutions under the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA).

The new sanctions — passed by Mr. Obama via Executive Order— target the Iranian energy and petrochemical sectors in particular. They do this by denying financial backing to any individual or institution seeking to do business with the National Iranian Oil Company, Naftiran Intertrade Company or the Central Bank of Iran or aid the purchase or acquisition of U.S. bank notes or precious metals by the Government of Iran.

This action is designed to deter Iran from establishing payment mechanisms for the purchase of Iranian oil to circumvent existing sanctions, and utilises the existing structure of sanctions law, including exceptions for significant reductions in the purchase of Iranian oil.

Earlier this year India, China and a host of other nations were handed “exceptions” from NDAA sanctions by Secretary of State Hillary Clinton, after they were said to have demonstrably cut down their oil imports from Iran.