The administration argues that the crippling penalties would undercut a carefully calibrated international effort targeting Tehran and would drive up oil prices, a potential economic boon that would help finance Iran's suspected pursuit of a nuclear weapon while hitting cash-strapped Americans at the gas pump. Just weeks after announcing a new round of restrictions, President Barack Obama on Thursday dismissed "some of the political noise out there" and said his "administration has systematically imposed the toughest sanctions on Iran ever." Obama said he was considering all options for dealing with Iran, but declined to be more specific.
Lawmakers are pressing ahead with penalties against foreign banks that do business with Iran's central bank, a plan that the Senate resoundingly endorsed last week on a 100-0 vote. "The administration does understand the centrality of this issue to forcing Iran. They would like to do it unimpeded by congressional mandates. That's true of every administration," Rep. Howard Berman of California, the top Democrat on the House Foreign Affairs Committee, said in an interview. "On this, we're not going to just roll over and take their suggestions." The showdown between the administration and Congress encompasses policy realities and political maneuvering.
Tough economic penalties are the most viable option short of a military strike. Looking ahead to the 2012 elections, Republicans and Democrats are intent on presenting a record of hawkishness toward Iran and unwavering support for Israel, mindful of the importance for American Jewish voters and their financial contributions to the political parties. The sanctions measure sponsored by Sens. Mark Kirk, R-Ill., and Bob Menendez, D-N.J., was added to a broader defense bill that's now the subject of closed-door negotiations between the House and Senate. Lawmakers hope to produce a final version of the policy legislation early next week.
Few lawmakers, even Democrats, have argued the administration's case for weakening the penalties. "I think Democrats are scratching their heads that the administration is leading them into a policy provision which not a single Democratic senator can support," Kirk said in an interview. He said he spoke to the chairman of the House Armed Services Committee, Rep. Howard "Buck" McKeon, R-Calif., on Thursday and he indicated that the House negotiators would accept the sanctions provision.
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