U.S. pressures energy firms, banks away from Iran

By Peg Mackey and Simon Webb

TEHRAN/DUBAI (Reuters) - The United States is piling pressure on European banks and energy firms to avoid doing business with Iran, sending a blunt message that reputations are at stake if they do so, officials and analysts said on Monday.

Washington, leading efforts to isolate the Islamic Republic over its atomic program, has slapped sanctions on two Iranian banks. United Nations sanctions have targeted one.

But U.S. arm-twisting may be having a stronger impact, with one bank withdrawing finance for a major gas deal and oil majors rethinking investment. A U.S. official warned multinationals in March to steer clear of OPEC's second biggest producer.

"The world's top financial institutions and corporations are re-evaluating their business with Iran because they are worried about the risk and their reputations," said Stuart Levey, the U.S. Treasury's top anti-terrorism official.

"You should worry too and be especially cautious when it comes to doing business with Iran."

French bank Societe General got the message and has pulled the plug on financing for a $5 billion project to develop part of Iran's massive South Pars gas field.

"SocGen has stopped their financial support because of pressure from the U.S.," Akbar Torkan, head of Iran's Pars Oil and Gas Company, said.

"No European bank is ready to prepare new financing for us. The U.S. is putting pressure on all European banks."