‘Resolute’ EU agrees to slap oil embargo on Iran

Foreign Secretary William Hague called the measure part of “an unprecedented set of sanctions”.

“I think this shows the resolve of the European Union on this issue,” he said.

But the initial response out of Iran was harsh. Two politicians threatened that their country would close the strait in retaliation.

Mohammad Ismail Kowsari, deputy head of Iran’s influential committee on national security, said the strait “would definitely be closed if the sale of Iranian oil is violated in any way”.

The move came after Britain joined the United States and France in sending a flotilla of warships through the sensitive Strait of Hormuz in a pointed message to the Iranian regime.

The Ministry of Defence confirmed that a Royal Navy Type 23 frigate, HMS Argyll, was part of the US-led carrier group to pass through the waterway, as tensions continued to escalate over Tehran’s nuclear programme.

Diplomats say the EU measures, adopted by the organisation’s 27 foreign ministers, include an immediate embargo on new contracts for crude oil and petroleum products while existing ones are allowed to run until July.

Between them, EU member states buy almost 600,000 barrels a day of Iran’s crude oil exports, which total 2.6 million barrels a day worldwide.

That makes the EU the largest single market for Iranian oil, with Greece relying on Iran for one third of its oil imports, while 13 per cent of Italian consumption comes from Iran, compared with almost 10 per cent in Spain.

Iran says its nuclear programme is exclusively for peaceful purposes. But many international officials fear the country is trying to develop nuclear weapons.

EU diplomats called the measure part of a twin-track approach: increase sanctions to discourage what they suspect is Iran’s pursuit of nuclear weapons but stress at the same time the international community’s willingness to talk.

The EU also agreed to freeze the assets of the Iranian central bank. Together, the two measures are intended not only to pressure Iran to agree to talks but also to choke of funding for its nuclear activities.

In October EU foreign policy chief Catherine Ashton wrote to Saeed Jalili, Iran’s top nuclear negotiator, saying her goal was a negotiated solution that “restores international confidence in the exclusively peaceful nature of Iran’s nuclear programme”. She has not yet received a reply.

The six-strong flotilla was led by the USS Abraham Lincoln, a nuclear-powered aircraft carrier with up to 90 warplanes on board. It reportedly passed through the strait without incident.

The MoD said that Britain maintained “a constant presence in the region as part of our enduring contribution to Gulf security”.

Many analysts doubt that Iran would maintain a blockade for long, but any supply shortages would cause world oil supplies to tighten temporarily.

Russia’s Foreign Ministry said the sanctions were a severe mistake likely to worsen tensions.

“It’s apparent that in this case there is open pressure and diktat, aimed at ‘punishing’ Iran for uncooperative behaviour. This is a deeply mistaken policy,” it said.

After news of the EU move, benchmark crude for March delivery rose 90 cents on the day to $99.23 a barrel. Brent crude was down 35 cents at $109.51.