Sanctions will push up oil prices: Iran

January 25th, 2012 - 3:44 am ICT by IANS  

Tehran, Jan 25 (IANS) The European Union’s (EU) oil embargo against Iran will push oil prices higher and undermine the world economy, Tehran warned Tuesday.

The EU has used oil as a “tool for political objectives” which will impact Europe and countries outside the region, the oil ministry said. Iran has already adopted necessary steps to counter the challenge, Xinhua quoted a statement from the ministry as saying.

Monday’s oil embargo has already pushed oil prices higher and spurred fresh supply concerns. The embargo will start from July 1 so as to allow major Iran oil importers like Greece, Italy and Spain to find alternative suppliers.

As of Monday’s close, light, sweet crude for March delivery gained $1.25, or 1.3 percent to settle at $99.58 a barrel on the New York Mercantile Exchange.

In London, Brent crude for March delivery also rose and last traded above $110 a barrel.

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