Iran halts oil sales to EU

Friday, April 13, 2012

The EU could be facing an oil shortage as Iran retaliates to sanctions placed on them by the US and EU.

As the fallout continues from Iranian nuclear activity, Tehran has continued to implement its own sanctions in the face of EU and US sanctions banning the import of Iranian Oil.

Iran has already hit Britain and France with a pre-emptive strike, an attempt to stop them importing Iranian oil before they can find alternative suppliers.

This week has seen a few more names being added to the list as Iran continues its retaliation. Iranian President, Mahmoud Ahmadinejad has placed embargoes on Greece, Spain and Germany according to an Iranian television network with Italy also set to be placed on the list. However, there are also suggestions Mr Ahmadinejad is considering cutting oil supplies to over a hundred European countries.

The latest reports may spur European countries to act faster in reducing their reliance on Iranian oil as many countries risk being cut off from the US financial system.

A report by the International Energy Agency (IEA) has predicted oil production in Iran could fall by up to a million barrels per day by July as nations restrict Iranian imports and find alternative supplies to avoid the risk of being hit US sanctions.

However, as the oil flow from one of the world's largest oil producers stems, this could see oil prices rocket as Europe looks for alternative suppliers.

Talks between Iran and the UN Security Council are set to reconvene in Istanbul regarding Iran's nuclear activity. Any positive results could lead to sanctions against Iran being eased.

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