US imposes new economic sanctions on Iran over nuke programme

The Obama administration has imposed new sanctions on Iran's currency and auto industry, turning the screw on its nuclear programme.

The new sanctions were imposed to render Iranian money used outside the country and to cut off the regime from critical revenue sources.

According to Fox News, the executive order from President Barack Obama has broadened the already a concerted sanction aimed at crippling Iran's economy, forcing it to comply with international demands that it prove its nuclear programme is peaceful.

The U.S. believes Iran is working to develop nuclear weapons, a charge that Iran has denied.

Officials described the move as part of a dual-track effort to offer meaningful negotiations to the Iranian regime while continually upping the economic stakes.

The White House said the new sanctions marked the first time Iran's currency, the rial, has been targeted directly with sanctions.

According to the report, the sanctions apply to foreign financial institutions that purchase or sell significant amounts of rial and to those who hold significant amounts of the rial in accounts outside Iran.

Senior administration officials said the sanctions were designed to make the rial essentially unusable outside of Iran.

The new round of sanctions comes ahead of the June 14 election in Iran to choose a replacement for term-limited President Mahmoud Ahmadinejad, the report added.