HP Says It Will Stop Distributor's Sales in Iran

The sanctions against Iran were imposed because the U.S. government has identified Iran as a sponsor of terrorism. The rules prohibit anyone from exporting goods, technology or services from the U.S. if they know the products will end up in Iran.

There are exceptions, but those are mostly granted for food or medical supplies that can be shipped to Iran under a special license from the U.S. government, said Andrew DeSouza, a spokesman for the Treasury Department, which administers the sanctions. Companies that want to ship other products to Iran, either directly or through a third party, have to submit to a governmental review or face steep penalties if they're found in violation, he said.

Criminal penalties can be up to 20 years in prison for people found in violation, with fines up to $1 million. Civil penalties can go as high as $250,000 or twice the value of the transaction in question.

DeSouza wouldn't say whether the Treasury Department is looking into HP.