Europe is closer that ever to an embargo of Iranian oil imports, with agreement in principle reportedly reached.
Diplomats from France and Britain have revealed that any remaining objections by EU member states to a European embargo on Iranian oil imports to the bloc were dispelled in late December, with Italy and Greece now reported to be on board.
“The principle of an oil embargo is agreed,” an unnamed EU diplomat told the Financial Times.
The question now appears to be concerning timing of an embargo and how to ensure the removal of Iranian supply does not further weaken the ailing economies of southern EU member states. A decision is not expected until the end of January, and is likely to be introduced incrementally to minimise the economic impact of removing Iran’s 450,000 barrel per day of oil from Europe.
Meanwhile, Philip Hammond MP, Britain’s Defence Secretary, is to say in a speech today that any attempt by Iran to block the Strait of Hormuz would be “illegal and unsuccessful,” according to a Financial Times report.
Iran has threatened to close the Strait in response to sanctions aimed at deterring it from a nuclear program widely believed to be conducted with a view to developing nuclear weapons, which Tehran denies. The International Atomic Energy Agency reported the likelihood of an Iranian nuclear weapons program last year. Tehran has recently signaled willingness to discuss resolution of what it calls “ambiguities” over its nuclear program.
