Iran Threatens to Halt EU Oil Supply

After the EU and America decided on an oil embargo against Iran, over it’s nuclear program, the war of words intensifying. The EU decided on an embargo starting in July. However, Tehran are looking at stopping oil exports of EU companies immediately. Many of these companies are already in a perilous financial situation due to the Debt Crisis in Europe. The oil in question is part of a buyback scheme which the Iranian Oil Industry favors, and is oil which is owed to these companies. If Iran went ahead, China would buy the oil they refused to send to Europe.

Iran is also threatening to close the Straits of Hormuz, where about 20% of the world oil is transported, making it the most important oil transportation sea route.

Without a satisfactory conclusion of this matter there could be serious financial implications for the global economy.