EU prepares to ban imports of Iranian oil

RUSSELL PADMORE | JANUARY 2012 | SOURCE: BBC

European Union foreign ministers will meet on Monday to finalise plans to place an embargo on oil from Iran, intensifying pressure on Tehran to stop developing its nuclear industry.

It is thought that the EU will implement the ban in July, allowing refineries time to buy crude from other countries.

EU prepares to ban imports of Iranian oil

Iran has threatened to block the Strait of Hormuz, where a fifth of the world's oil is transported.

Western governments claim Iran's nuclear programme has military aims.

The threat from Tehran to use its navy to stop oil shipments through the Strait of Hormuz, prompted the US, which has a navy base in Bahrain, to say it would keep the trade routes open.

Manouchehr Takin, senior petroleum analyst at the Centre for Global Energy Studies, told the BBC these developments had pushed up the price of oil on the energy markets.

"Many people have already [got] positions. The price is up now partly in the anticipation of something happening and disruption because of the European ban on oil purchased from Iran by European companies," he said.

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