Report: Juppe says EU could place embargo on Iranian oil

Jan 5, 2012, 0:02 GMT

Paris/Lisbon - Amid the controversy over Iran's nuclear program, the European Union appeared to move closer to imposing sanctions on Iranian oil on Wednesday.

'On January 30 the Europeans will hopefully decide on an oil embargo,' said French Foreign Minister Alain Juppe to the French newspaper Le Figaro on Wednesday during a visit to Lisbon.

Greece and Italy, however, remained concerned, as the two countries are dependent on Iranian oil.

Iran is under increasing pressure to comply with international demands over its nuclear programme, and has threatened to block the Strait of Hormuz oil transport corridor in retaliation for a new round of US sanctions.

Negotiations over a possible oil embargo are currently taking place with Saudi Arabia. The region's largest oil exporter has said it is prepared to compensate for any shortfalls in the region's oil output.

US State Department spokeswoman Victoria Nuland greeted the possibility of a new round of EU sanctions as 'very good news.'

'These are the kinds of steps that we would like to see not just from our close allies and partners in places like Europe but from countries around the world,' she said. 'We think that the place to get Iran's attention is with regard to its oil sector.'

Tehran has constantly rejected the key Western demand - suspension of its uranium enrichment plan as a sign of goodwill - until the true nature of the Iranian nuclear programmes are proven.

While Iran insists that its nuclear programmes are for civil and peaceful purposes, the West fears that Tehran's atomic technology could be used for secret military projects.

Tehran rejects any suspension, and has said it wants the powers to acknowledge its right as signatory of the Nuclear Non-Proliferation Treaty to pursue nuclear programmes.

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