Iran threatens to stop oil exports, considers anti-Europe sanctions

A general view of Iran's first offshore oil platform, Iran-Alborz, in the Caspian Sea near city of Neka about 392 km (245 miles) north of Tehran (Reuters/Official website of the Iranian Oil Ministry)

Source: Russia Today

Iran warns that it could stop exporting oil, driving global crude prices up, should the US and allied Europe tighten sanctions further. For such a case, Tehran says, it has a contingency strategy to carry on without oil revenues.

­“If you continue to add to the sanctions, we will stop our oil exports to the world,” Iranian Oil Minister Rostam Qasemi told reporters Tuesday. “The lack of Iranian oil in the market would drastically add to the price.”

Iran is currently under pressure from international sanctions, mainly in oil exports, imposed by the UN Security Council, the US and the EU in order to curb the Islamic Republic’s controversial nuclear program. Washington and some if its allies believe the program is being used to develop a nuclear weapon.

On October 15, the European Union foreign ministers approved a new package of sanctions targeting Iran’s financial, trade, energy, transportation and telecommunications sectors.

Earlier in October, American lawmakers also extended the already tough sanctions against Iran.

The measures have severely hurt the Islamic Republic’s economy.

However, Qasemi said that Iran has a “Plan B” which will enable the country to make due without profits from oil sales. He did not mention how long the economy could function, though, without selling oil.

Iran is still pumping oil at capacity and producing 4 million barrels per day (bpd), Qasemi said, denying OPEC’s report that the country's output has fallen to around 2.7 million bpd. He added that "Iran has been facing US sanctions for 30 years while successfully managing its oil sector."

Iranian Parliament considers sanctions on Europe

­Angered by a new round of sanctions, Iranian lawmakers are working on a “preemptive embargo package” which would hit European states, Press TV reported.

Officials plan to impose sanctions in three phases.

The first will deprive Iran’s enemies of its high-quality light and heavy crude oil. According to the report, 70 European oil-refining plants depend on Iranian oil.

The second phase is a ban on goods transported from European states that participated in imposing the sanctions against Tehran.

And the third would prohibit Iranian citizens from traveling to hostile countries.
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2012 Oct 15

EU bans import of Iranian gas to European countries – German FM

Nouri Petrochemical facilities of the South Pars gas field in the southern Iranian port of Assaluyeh (AFP Photo / Atta Kenare)

Source: Press TV

EU governments have agreed to one of the toughest sets of sanctions against Iran's nuclear program. German Foreign Minister Guido Westerwelle has announced the EU is banning the import of Iranian natural gas into European Union countries.

The set of sanctions also includes a ban on financial transactions between European and Iranian banks, with some exceptions for those involving humanitarian aid, food, and medicine purchases.

"The [EU] Council has agreed additional restrictive measures in the financial, trade, energy and transport sectors, as well as additional designations, notably of entities active in the oil and gas industry," a written statement issued by the European Union council said.

Further export restrictions were imposed on graphite, metals, and software for industrial processes. Restrictive measures were also made relating to Iran's ship building industry.

The move is aimed at putting pressure on Iran to cooperate in talks regarding its nuclear program.

Prior to Monday’s meeting of EU foreign ministers in Luxembourg, British Foreign Secretary William Hague said new sanctions would be "a sign of our resolve in the European Union that we will step up the pressure."

The US and its allies have long accused Iran of using its nuclear program to develop atomic weapons, although Tehran says the program is solely for peaceful purposes.