BRUSSELS — A financial clearinghouse used by virtually every country and major corporation in the world agreed Friday to shut out Iran from its respected network, an unprecedented escalation of global economic pressure to halt Iran’s suspected drive for nuclear weapons.
Quicker than a succession of slow-acting economic sanctions, expelling Iran from the banking hub could put a chokehold on its oil-dependent economy. The move was made under strong pressure from the United States and the European Union, which are looking for ways to derail Iran’s nuclear program without a military strike.
“If SWIFT follows through on its public commitment to ban Iranian banks, it could sever the Iranian regime’s financial lifeline,” said Mark Dubowitz, an Iran sanctions expert advising the Obama administration. “… Iran would be the first country in SWIFT’s history to be expelled from what is the financial equivalent of the United Nations.”
The European Union is expected to act within weeks to effectively cut off major Iranian banks from participation in the Society for Worldwide Interbank Financial Telecommunication, known as SWIFT. More than 40 Iranian banks and institutions use SWIFT to process financial transactions. Expulsion includes risks of disruption and price increases on the world oil market. Iran also could retaliate in unpredictable ways. The Associated Press
