European Union Considering Oil Embargo on Iran

In response to increasing suspicions in the West about Iran’s nuclear program, the European Union is considering to tighten sanctions against Iran.

Top administration officers are at odds with each other over the next move against Iran. Administration officials desire to move cautiously in order to avert annoying allies and to destabilize oil markets while law makers are insisting for swift action against Iran.

EU foreign ministers during a meeting said that as a reaction to a report from the U.N. nuclear watchdog, Iranian transport, energy and fiscal sectors might be targeted.

Much of Iranian oil is exported to India and China. Nearly 18% Iran’s oil exports are shipped to EU member countries.
Britain and France are in favor of oil embargo. But it is feared that embargo may increase world oil price during recent tough economic times as well as denial of attractive financing offer to debt ridden Greece may put it in more troubles .
Iran’s seaborne commerce has already suffered due to pulling out or scaling down by shipping companies.

Previous Post »  
Tags: , , , ,
Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

Comments are closed.