EU Sanctions Iran Oil, Gold

The European Union has agreed more sanctions on Iranian crude oil imports to the EU and on gold in an initiative driven by the UK and USA and agreed at a Foreign Affairs Council meeting in Brussels.

Iran continues to refuse to comply with the International Atomic Energy Agency (IAEA), said the EU in its conclusions.

UK Foreign Secretary William Hague welcomed further sanctions on Iran after relations between the two countries worsened on fears that Tehran is developing a nuclear weapons industry. The US and UK were the main driving force behind the new round of sanctions:

"Iran's recent decision to commence 20% enrichment at its underground site at Qom shows that it continues to choose a path of provocation," said Hague.

Iran has responded with threats to close the Strait of Hormuz, through which 20 percent of the world's oil supply passes and accused the West of 'psychological warfare'.

In December, Iran's Parliament voted to expel British Ambassador Dominick John Chilcott after the UK cut off banking ties with the country over concerns that its nuclear programme may have military dimensions.

This followed the International Atomic Energy Agency’s (IAEA) latest report on Iran, which highlights fresh concerns about the possible military dimensions of Iran’s nuclear programme. It is the first time that the UK has used these powers to cut an entire country’s banking sector off from its financial sector.

Foreign Secretary William Hague said:

“The IAEA's report last week provided further credible and detailed evidence about the possible military dimensions of the Iranian nuclear programme. Today we have responded resolutely by introducing a set of new sanctions that prohibit all business with Iranian banks.

“We have consistently made clear that until Iran engages meaningfully, it will find itself under increasing pressure from the international community.  The swift and decisive action today coordinated with key international partners is a strong signal of determination to intensify this pressure.”

From Monday 21 November 2011, all UK credit and financial institutions were required to cease business relationships and transactions with all Iranian banks, including the Central Bank of Iran, and their branches and subsidiaries.

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