"The Obama administration is talking with allies and Congress about the possibility of imposing an extreme economic sanction against Iran if it fails to respond to President Obama’s offer to negotiate on its nuclear program: cutting off the country’s imports of gasoline and other refined oil products.

The option of acting against companies around the world that supply Iran with 40 percent of its gasoline has been broached with European allies and Israel, officials from those countries said. Legislation that would give Mr. Obama that authority already has 71 sponsors in the Senate and similar legislation is expected to sail through the House.

In a visit to Israel last week, Mr. Obama’s national security adviser, James L. Jones, mentioned the prospect to Israeli officials, they said."

David E. Sanger reports for the New York Times August 2, 2009. [2]