Report: Sanctions against Iran working

JERUSALEM -- A new Israeli government report published locally Thursday concludes that international sanctions are hitting Iran hard and called for another round -- adding a new wrinkle to Prime Minister Benjamin Netanyahu's claim that tougher action is needed to prevent the Islamic Republic from developing nuclear weapons.

Netanyahu argues that an attack on Iran's nuclear facilities may be the only answer to what he calls a fanatical and intransigent Iranian leadership. President Shimon Peres and others want to give punishing measures more time to persuade the Iranians to negotiate.

Iran insists its nuclear program is for peaceful purposes.

Existing UN sanctions have cut Iran's oil exports by more than half in the past year and slashed oil revenue by $40 billion, the report concludes. Also, sanctions on Iran's central bank have made it difficult for the regime to access its foreign currency reserves. Bread, meat and electricity prices have soared.