Iran Halts Oil Supply To Germany, Bans Imports From 100 EU Companies

Iran has stopped oil exports to Germany and declared a ban on imports from 100 European Union companies in retaliation to the EU embargo on Iranian crude imports which will come into force in July, the Press TV has reported.

Deputy president of Iran Trade Promotion Organization Sasan Khodaei said in an interview with the Press TV that Tehran had imposed sanctions on 100 EU companies.

The US and its European allies are imposing tighter sanctions on Iran, the second-biggest producer in the Organization of the Petroleum Exporting Countries (OPEC). The West accuses Iran of taking steps toward building a nuclear weapon, which the Islamic republic denies.

Responding to the West's tougher stance, Iran has already stopped oil deliveries to the UK, France and Spain and threatened to block the Strait of Hormuz through which a fifth of the world's tanker-borne oil flows. Analysts have said that any attempt to close the Strait of Hormuz would be a military, economic and political disaster for Iran. It is also reported of a planned stoppage of oil exports to Italy.

The European Union buys about 18 percent of Iran's total crude exports. The UK and Germany get only about 1 percent of their oil from Iran while France gets about 3 percent. European countries such as Greece, Italy and Spain are much more reliant on Iranian oil. According to European Union data, Italy and Spain each get about 13 percent each while Greece receives 33 percent of its oil from Iran.

Iran's top oil buyers in Europe have been reportedly making substantial cuts in supply months in advance of the EU sanctions. Those that have reduced Iranian imports are filling the void with a range of replacement barrels from top exporter Saudi Arabia, Iraq and Russia.

Meanwhile, it is also reported that Iran is offering oil potential customers in Asia at zero-percent interest for six months. This report has come following the statement from Iranian Petroleum Minister Rostam Ghasemi that the country will not be facing any problem to sell oil in spite of the sanctions and embargo.

In total, Iran exports around 2-2.5 million barrels per day of oil. The loss of this supply might add as much as $15 to oil prices, but as yet there has been little actual disruption.

These report came ahead of the scheduled talks Friday between Iran and the US, Britain, China, France, Russia and Germany on Tehran's nuclear program.