EU member states have agreed in principle to ban imports of Iranian crude oil to put pressure on the country over its nuclear programme.
Iran has dismissed the threat of new sanctions and denies Western claims that it is trying to develop a nuclear weapons programme. Iran has also denied that a record low of its currency this week was linked to punitive US measures against its banks. Oil prices on international markets rose on news of the EU agreement.
On Tuesday France had called for “stricter sanctions” on Iran. However, even if sanctions are adopted at the end of the month, it may be several months before they are implemented.
The Iranian state gets more than half of its revenue through the export of crude oil, says the BBC’s James Reynolds. If Europe does stop buying, Iran will have to turn to countries in Asia to replace its lost trade, who will demand a discount, he adds. The EU currently accounts for around 17% of Iranian oil exports.
The Security Council has already passed four rounds of sanctions against Iran for refusing to halt uranium enrichment. Highly enriched uranium can be processed into nuclear weapons. These sanctions include a ban on the supply of heavy weaponry and nuclear-related technology to Iran, a block on Iranian arms exports, and an asset freeze on key individuals and companies.
Source: BBC News
Image: The Hindu
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