Bush Expected to Retain Iran Oil Sanctions.

Byline: Carter Dougherty

Apr. 4--The Bush administration is leaning toward a renewal of a law that sanctions foreign companies that invest in Iran's energy industry, according to government and industry officials.

The law, which drew the objections of European and Asian countries when it passed in 1996 with the backing of the pro-Israel lobby, aims to halt the flow to Iran of hard currency that it can use to support terrorism.

Business groups, who insist that the sanctions do not affect Iranian behavior, hope that the administration will fight an extension of the law and allow it to lapse on Aug. 5 as part of a broader review of policy toward Iran. …