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Brussels: The European Union and the United States will warn Iran on Tuesday that they are ready for extra sanctions if Iran continues to ignore demands to suspend nuclear work.
A draft communiqué made available to the media ahead of an EU-US summit in Slovenia on Tuesday suggests the possibility of a crackdown on Iranian banks.
"We are ready to supplement those (UN Security Council) sanctions with additional measures," according to the communiqué to be read by President George W. Bush.
"We will continue to work together...to take steps to ensure Iranian banks cannot abuse the international banking system to support proliferation and terrorism," the draft added.
Western countries suspect Iran is seeking the ability to make nuclear weapons, but Iran insists its programme is for peaceful purposes.
EU diplomats have said the EU is preparing an asset and funds freeze on Iran's Bank Melli, but that it first wants to see how Tehran responds to a new offer of incentives for it to suspend uranium enrichment.
EU foreign policy chief Javier Solana is due to take that offer to Tehran before the end of the month.
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