The White House cleared the way for tough new sanctions on Iran Friday, saying a cutoff of Iranian oil wouldn’t significantly harm world markets.

President Barack Obama said there was “sufficient supply of petroleum and petroleum products from countries other than Iran” to cushion the impact of sanctions on oil markets.

The move, which comes amid rising gas prices across the country, allows the U.S. to move forward with congressionally mandated sanctions that target financial institutions which continue to do business with Iran.