Planned EU oil embargo looks set to squeeze Iran

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Posted / Last update: 12-06-2012
On July 1, the European Union says it will stop buying oil from Iran. Europe is one of the most important markets for Iran's oil, and in anticipation of the boycott, Iranian oil exports worldwide are already down by more than 25 percent

Iran's leaders say they can weather this pressure, and so far they have refused to budge on their controversial nuclear activities, ones that prompted a series of economic sanctions. As a result, it appears as if Iran will only face even greater difficulties when it comes to exporting oil, the lifeblood of its economy.

Iran is facing nothing but trouble in the global oil market, says Steve LeVine, energy analyst and author of the book ‘The Oil and the Glory’. "It's being hit on two sides — fewer absolute sales and it's getting less money for the sales that it's making," LeVine says. Sales to Europe are already down by a half from a year ago, and Iran is having a good deal of difficulty making up the difference, says LeVine. "Even the countries that have been agreeable to buy Iran's oil have cut back," he added.

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