Iran dismisses latest US sanctions as 'psychological war'

Tehran (Platts)--7Feb2012/633 am EST/1133 GMT

Iran's foreign ministry dismissed Tuesday as "psychological war" an Executive Order by US President Barack Obama to freeze the assets of the Iranian government and its central bank in a bid to pressure Tehran to settle its nuclear row with the West.

"When you use your highest capabilities to sanction a nation and yet the people pursue their path even more seriously...it shows that you don't have enough capability to stop a nation," foreign ministry spokesman Ramin Mehmanparast said at a weekly press conference televised by state television.

"These are wrong actions and miscalculations toward a nation," he added.

He said the fact that the Central Bank of Iran did not have banking dealings with the US shows that the move was to "create a heavy atmosphere of psychological war and propaganda...and cause concern, pressure and social dissatisfaction among our people."

"This cannot have any impact on our nation's willpower to achieve their rights," Mehmanparast said.

But he did not answer questions on whether Iran had any assets in the US and if it did, how it could get them back.

He also said some US presidential hopefuls believe that "with such actions, they can possibly collect more votes."

"Using a logical and appropriate approach and respecting people's rights will certainly help them more," Mehmanparast said.

Obama's Executive Order issued Monday freezes all property and other assets owned by the government of Iran, Iran's Central Bank or any person or entity determined to be acting on their behalf.

The West believes Iran is conducting a covert atomic weapons program.

Iran has repeatedly denied the allegations and insists its nuclear program is peaceful.

When asked about a motion in the making by Iranian lawmakers to stop oil exports to Europe in a tit-for-tat move, Mehmanparast said: "We think the European officials should be held responsible. Because they initiated these actions and endangered social and economic security of their people by uncontemplated actions."

He added: "Representatives of our people have some measures on their agenda and this is a natural move. If some countries seek hostility towards our people, there will be some reactions after all."

The EU has decided to stop imports of oil from Iran as of July 1 as part of coordinated action with the US to convince Tehran to negotiate a settlement of the nuclear issue.

--Aresu Eqbali, newsdesk@platts.com

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