Obama signs Iran sanctions bill into law

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

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

But Mr Obama stressed that he had concerns about parts of the legislation dealing with the handling of foreign terror suspects.

"The fact that I support this bill as a whole does not mean I agree with everything in it," Mr Obama said.

The president signed the law in Hawaii, where he is on holiday. The move comes at a times of heightened tension over the Iranian nuclear programme.

Western powers say Tehran is seeking to acquire a nuclear weapons capability, but Iran insists the programme is purely for energy and medical purposes.

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