EU to set June 1 deadline for Iran oil ban

PanARMENIAN.Net - European Union member states are coalescing around a July 1 deadline fully to implement an embargo against Iranian oil imports, a timescale that would align the bloc with US plans to impose related restrictions.

Meanwhile, European diplomats also reported fresh momentum in efforts to sanction Iran’s central bank – a campaign that has largely been overlooked amid the headlong rush toward an oil embargo.

The twin measures represent an escalation in the EU’s attempts to convince Iran to halt a nuclear programme that western governments believe is for military purposes. Tehran denies this and has vowed not to bend to international pressure, according to Financial Times.

As the EU states stepped up their preparations, Iran’s Opec representative, Mohammad Ali Khatibi warned that an oil embargo on Iran would be “economic suicide” for the west. Oil analysts worry that the EU embargo could push oil prices, already above $110 a barrel, higher, hitting economic growth.

“The US and some European states should avoid adventurism in the world oil markets,” Mr Khatibi told the semi-official Mehr news agency.

EU members have already agreed in principle to an embargo, but its timing has been a point of contention within the 27-member bloc: France, Germany and the UK are pressing for swift implementation while Greece and other Iranian customers plead for a longer transition period to line up alternative supplies.

The US introduced this month sanctions to penalise foreign financial institutions dealing with Iran’s central bank, which clears most oil exports. Under pressure from Washington, Japan and South Korea, two big buyers of Iranian crude oil, have said that they are considering lowering their reliance on Iranian oil.