No EU Deal on Iran Oil Embargo Yet

Diplomats Deny French FM's Claims of Agreement

by Jason Ditz, January 05, 2012

Yesterday’s claims that the European Union was on the cusp of announcing a full ban on the importation of Iranian crude oil appear to have been premature, and now it seems that the negotiations are far from complete.

The speculation came from French Foreign Minister Alain Juppe, who claimed the deal was virtually finalized and would be announced by the end of the month. EU diplomats familiar with the deal are denying that.

The diplomats, quoted anonymously by the German press, say that the deal is not close and that a number of key details surrounding the potential ban are still being discussed.

Rumors of the ban come as oil is near an eight-month high, with analysts projecting at least a 10 percent increase in the spot price of Brent North Sea Crude if Iran is cut off from the European market. Though the effort is aimed at harming Iran, it is expected they will be able to offload the addition supply to eastern Asian nations with little trouble.

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