Moreover, we are confident that we can succeed in this endeavor, because the mere threat of sanctions is already keeping some foreign oil companies out of Iran. But we believe sanctions against trade with Iran would be ineffective, and counterproductive. We simply will be unable to keep Iran from acquiring those goods common to the oil and gas industry, which are manufactured and sold by trading companies all over the world. We support sanctions against companies that violate the UN Security Council bans on certain trade and transactions with Libya. We have worked hard in the UN to build and sustain international support for sanctions against Libya, including bans on certain oil and gas equipment as well as prohibitions on the transfer of military goods, aviation parts and services, and financial services.
Global restrictions are more effective than unilateral American action.
It makes sense to add to this existing UN sanctions regime. But we believe sanctions against investment in Libya's oil and gas resources would be ineffective, and counterproductive. It is too late for us to stop foreign investment in Libya's oil and gas sector, because some two dozen companies are already working there now. It is likely that the governments of these companies would take action to protect them. Such retaliatory measures could have a harmful impact on U.S. companies and workers.