An EU oil embargo on Iran has come into force prohibiting the import of Iranian crude by any country in the bloc.
The sanctions offensive, in tandem with action by the US, includes denying European companies the chance to provide any financial or insurance services to assist in the selling or transportation of Iranian oil and petroleum products.
The measures are intended to pressure Tehran over fears it is developing nuclear weapons which it denies. A statement from the Ministry of Finance and Economy said setting a date for the start of the embargo was. “psychological war from the west.”
Its understood Iran’s economy has already suffered under four rounds of United Nations Security Council sanctions. It is hoped this latest embargo will pile more pressure on the country’s finances. Estimates vary but analysts suggest Iran’s exports could have been reduced by up to 40 per cent.
In the lead up to the July 1 deadline Tehran’s currency market reacted negatively.
Bit its not just the effect on Iran. Greece and Italy were the main importers of Iranian oil. One commentator says both have been hurt.