EU Iran sanctions: Ministers adopt Iran oil imports ban
EU foreign policy chief Catherine Ashton: "Tehran should come to the table"
European Union foreign ministers have formally adopted an oil embargo against Iran over its nuclear programme.
The sanctions involve an immediate ban on all new oil contracts with Iran and a freeze on the assets of Iran's central bank within the EU.
The EU currently buys about 20% of Iran's oil exports.
There was no official reaction from Iran, but one Iranian lawmaker played down the decision, describing it as a "mere propaganda gesture".
Meanwhile, the International Atomic Energy Agency, the UN's nuclear watchdog has confirmed it is sending a team to Iran between 29 and 31 January "to resolve all outstanding substantive issues".
Last November the IAEA said in a report that it had information suggesting Iran had carried out tests "relevant to the development of a nuclear explosive device" - sparking the decision by the US and EU to issue tougher sanctions.
Tehran insists its nuclear programme is for energy purposes.
Earlier on Monday, the Pentagon said the US aircraft carrier USS Abraham Lincoln, as well as a British Royal Navy frigate and a French warship, had passed through the Strait of Hormuz at the entrance to the Gulf without incident, in the wake of Iranian threats to block the trade route.
'Substantial impact'The EU said the sanctions prohibit the import, purchase and transport of Iranian crude oil and petroleum products as well as related finance and insurance. All existing contracts will have to be phased out by 1 July.
Investment as well as the export of key equipment and technology for Iran's petrochemical sector is also banned.
Additional restrictions have been placed on Iran's central bank and in the trade of gold, precious metals and diamonds.
BBC Europe Editor Gavin Hewitt says it is one of the toughest steps the EU has ever taken.
Analysis
So once the new measures are in place how successful will they be? Even western diplomats are uncertain.
There is no doubting that the Iranian economy will suffer. But the nuclear programme is a matter of national pride and ultimately national security.
Iran has seen the demise of regimes in Iraq and Libya and noted the survival of that in North Korea - the one so-called "rogue state" that has nuclear weapons.
Iran's rulers may well believe that having at least the potential for a nuclear bomb is something that could secure the country against outside threat.
Seen in this light one can imagine the Iranian authorities being willing to absorb considerable economic pain to pursue their nuclear research effort.
EU foreign policy chief Catherine Ashton said the purpose of the sanctions was "to put pressure on Iran to come back to the negotiating table".
Earlier, UK Foreign Secretary William Hague said the embargo showed "the resolve of the European Union on this issue".
"It is absolutely right to do this when Iran is continuing to breach United Nations resolutions and refusing to come to meaningful negotiations on its nuclear programme," he added.
But the Russian foreign ministry said it was a "deeply mistaken" move that would not encourage Iran to return to the negotiating table.
"It's apparent that in this case there is open pressure and diktat, aimed at "punishing" Iran," it said in a statement.
Ali Adyani, a member of the Iranian parliament's energy commission, was quoted by the semi-official Fars news agency as saying the EU decision "would only serve some American and European politicians".
"It will not have any effect on Iran's economy," he said, adding that Tehran could sell oil to "any country" despite the ban.
Rising tensionsBBC Iran correspondent James Reynolds says oil is the country's most valuable asset and sales help to keep the Iranian government in money and power.
A decision by the EU to stop buying from Iran may damage the Iranian economy - but in itself it won't destroy it, our correspondent says.
The BBC's James Reynolds visits Dubai where many people export goods to Iran
Iran sells most of its oil to countries in Asia. The EU and the United States are now working to persuade Asian countries to reduce their purchases from Iran as well.
Iran has already threatened to retaliate by blocking the Strait of Hormuz at the entrance to the Gulf, through which 20% of the world's oil exports pass.
The US has said it will keep the trade route open, raising the possibility of a confrontation.
Late last year Iran conducted 10 days of military exercises near the Strait of Hormuz, test-firing several missiles.
Oil prices have risen already because of the increasing tension and the expected impact of an EU ban on oil supplies to Europe.
Comment number 98.
Cristobal HempersJust now
Funny how it's the UK and the USA who decide who gets nucleur weapons and who don't.
Funny. Especially since it's the culprit and the backer of the ONLY atomic bombs used on humanity, ever.
If there was one nucleur bomb left in the world, and I decided who it went to (other than destroying it) I'd give it to Iran over UK/USA every single time.
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Comment number 97.
POG2 Minutes ago
If the figures are correct the EU only purchase between them 28% unless other countries like China 20% , Japan 17% and India 16% also stop buying Iran's oil it's a complete waste of time. We are playing into the hands of the other oil companies just watch the price of fuel go up.Like all politicians the only people that suffer are the one's that voted them in power.
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Comment number 96.
Dancin Pagan The Mad Kiltie2 Minutes ago
GB Junior - "Hey, Blair, we need an excuse to invade Iraq & get Saddam"
TB - "Woof, woof. No probs George, anything you want."
Barack Obama - "Hey, lightweight, we need you to invade Libya & get Gaddafi"
DC - "Woof woof, no probs Barack, anything you want."
BO - "Hey, Limey, we need an excuse to invade Iran & get Ahmadinejad"
DC - "Woof woof, no probs Barack, anything you want"
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Comment number 95.
Concerned Citizen3 Minutes ago
77 Tuzzer84
Good emotive stuff but not true - price hikes merely accelerate the change to alternatives and depresses the world economy and with it oil demand. US is now close to self sustainability in energy again due to technology advances in domestic shale and sand oil and gas followed by coal seam gas developed because of higher Gulf oil prices.
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Comment number 94.
Stuart_MCFC3 Minutes ago
Where is the proof Iran is building a nuclear weapon?
How many more must die due to the evil of the Likudniks?
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Comments 5 of 98