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U.S. Weighs Efficacy of New Iran Sanctions
[Dow Jones] Ian Talley - While the U.S. Congress appears on course to approve legislation embargoing gasoline and diesel fuel to Iran, the Obama administration isn't convinced the punitive measures will work. "This is exactly the time to use financial tools to build leverage for diplomacy," Matthew Levitt, a former Treasury official responsible for international sanctions, told a Senate panel earlier this month. Mark Dubowitz, executive director of the Foundation for Defense of Democracies, noted that while many firms around the world ship petroleum products, there's a limited number of companies that underwrite both the ships carrying the petroleum and the cargo itself. By targeting shipping underwriting, not only would the risk premium paid by Iran to ship their fuel become prohibitive, Dubowitz said it could be possible to persuade the insurance companies to exit the market.