Recently, many western governments have begun reevaluating their policies toward the two countries, in response to continued unacceptable activities, including offensive statements made by Iranian and Libyan officials after suicide bombings in Israel. The EU, Canada, Japan, and other allies want to see changes in Iranian and Libyan behavior, and our shared objectives provide a strong base for continued diplomatic efforts to gain greater cooperation for our policy of economic pressure. An Effective Solution Drawing upon these factors, including our understanding of the policies and economies of Iran and Libya, and the concerns and motives of our allies, the Administration has worked closely with the House International Relations Committee, the Ways and Means Committee, and the Banking Committee to craft the House version of the bill. Let me summarize the Administration's position. We support sanctions against investment in Iran's petroleum resources.
Investment is the chokepoint of Iran's economy.
Blocking foreign investment in Iran's oil and gas sector will have a major impact on the country's economy by limiting its level of oil and gas production, and thus the government's revenues. Fewer barrels will mean fewer dollars. 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.