Bank of Tokyo-Mitsubishi freezes Iran's accounts

The Bank of Tokyo-Mitsubishi UFJ has frozen the accounts of the Iranian government and its central bank in response to a New York district court order, a move that could disrupt Japan's crude oil imports from Iran, sources close to the matter said Thursday. The court in New York apparently issued the order so that funds will be secured to pay damages to families of the victims of the 1983 US Marine Corps barracks bombing in Beirut, Japan's (Kyodo) news agency quoted the sources as saying. The court has found Iran liable for the bombing, though Iran has denied responsibility, Kyodo said. The Japanese bank, which manages 70% to 80% of transactions in Japan's trade with Iran, has already halted transaction settlements for Japanese firms that use the account of the Iranian government.