Iran fright pushes oil up
OIL prices soared to a six-month high yesterday after reports that Iran was banning oil exports to six European countries in protest at sanctions imposed on the country over its nuclear developments.
Greece, Italy, Spain, Portugal, the Netherlands and France would be cut off, Iranian state TV claimed.
Any such move would pre-empt the EU’s own embargo on imports from Iran, due to be triggered on 1 July.
Brent crude oil jumped by $1.76 to over $119 after the reports which were denied by the country’s oil ministry.
Iran’s oil ministry denied the reports, yet rising tensions and the possibility of action have still propped up prices. Iran’s President, Mahmoud Ahmadinejad, who yesterday visited the Tehran Research Reactor, said: “The arrogant powers cannot monopolise nuclear technology.”
US authorities dismissed reports of an oil ban as “hype”.
“We deny this report … If such a decision is made, it will be announced by Iran’s Supreme National Security Council,” an oil ministry spokesman said.
Harry Tchilinguirian of BNP Paribas said: “Bubbling tensions with Iran will always be supportive of the oil price, and this latest development is no different.”
The EU last year bought almost 600,000 barrels of Iranian crude every day which accounts for 24 per cent of the country’s total oil exports.
Iran’s President, Mahmoud Ahmadinejad, yesterday visited the Tehran Research Reactor, a facility designed to produce medical isotopes for cancer treatment, where nuclear fuel rods were being installed for the first time.
The defiant leader said: “The arrogant powers cannot monopolise nuclear technology.” US authorities dismissed reports of an oil ban as “hype”.