US gets tough against Iran

US President Barack Obama has signed into law a major defence bill, which includes tough new sanctions against Iran.



The law cuts off from the US financial system any foreign firms that do business with Iran's central bank.



However, Obama said he had concerns about sections of the bill, which increase the US military's authority over terror suspects.



The president signed the law in Hawaii, where he is on holiday.



The move comes at a time of heightened tension over Iran’s nuclear programme, which Tehran insists is purely peaceful.



The bill was passed by wide majorities in both houses of Congress and gives the president the power to grant a six-month grace period to oil markets.



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