Embargo and Iran’s Reaction

While an EU oil embargo which is set to begin on 1 July, Iran said that they had halted oil sales to British and French companies on Sunday. The decision came in advance. It can be say revenge in a form of shadow. While EU was trying to give some time to the oil companies which were working in Iran by giving theme some time this decision have change the game board. Ahmad Qalehbani, the head of Iran's national oil company, said that the ban might be extended to other EU members that continued hostile acts against Iran.

Oil exports to Spain, Greece, Italy, Portugal, Germany and the Netherlands could be stopped. In those countries Greece buys about one third of its oil from Iran whereas Italy and Spain each buy over 10%. The Europe accounts for about 20% of Iran’s oil export. But the main point is Iran’s major customers are not in Europe but in Asia.

And after the no more selling oil decision Iran has announced it will hold military exercises to advance protection of its nuclear sites. A military statement said that the drills would be held in southern Iran to counter all possible threats, especially to public, important and nuclear centres. But the main reason can be say that there is a chance that Israel is may launch a military strike on Iran's nuclear facilities. The exercise was scheduled on Monday morning. Last year Iran conducted 10 days of military exercises at the entrance to the Gulf near the Strait of Hormuz and also test-fired several missiles. Iran has also threatened to block the strait. Through strait 20% of the world's oil exports pass.

The whole problem was started when Iran started to enrich its uranium supply. Though it told that it is only for power generation but the US and its allies believe the programme is geared towards making weapons.

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