Obama says Iran to face toughest possible sanctions


WASHINGTON (Reuters) - U.S. President Barack Obama warned Iran on Thursday it would face the toughest possible sanctions for an alleged plot to kill the Saudi ambassador to Washington, as officials eyed action against its central bank.

Saudi Arabia on Thursday accused Iran of fomenting instability but pledged a "measured response" over the alleged plot that has heightened tensions between OPEC's two top oil producers.

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