This, it seems, has gone largely unnoticed in Malaysia:
WASHINGTON, March 20 — For all its efforts to apply economic and political pressure on Iran over its nuclear program, the United States has never used a potentially potent tool in its arsenal — penalties on foreign companies that assist Iran in producing oil and natural gas.
That may be about to change. The Bush administration has quietly been warning energy companies, including Shell, Repsol and SKS, the Malaysian oil company, as well as the governments of China, India, Pakistan and Malaysia, that penalties are possible if they pursue energy deals with Iran. [U.S. Cautions Foreign Companies on Iran Deals. NYT. March 21 2007]
Earlier, US Senator Tom Lantos demanded the President Bush to suspend all FTA negotiations with Malaysia because of the USD 16 million (or USD 20 million, depending on sources) deal between SKS Ventures of Malaysia and National Iranian Oil Company.
One reply on “[1149] Of the US might penalize Malaysian firm for doing business with Iran”
[…] Such distinction seems irrelevant however given the consequence: it is clear that Petronas and Malaysia value relationship with the US more than with Iran. Petronas wants to to “safeguard its business exposure” in the US[2] while the Najib administration has been trying to improve relations with the US. On top of that, the US has been applying pressure on Malaysia since 2007. […]