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Monday, February 20, 2012

impact Iran ban exports to UK and France Oil prices jump

impact Iran ban exports to UK and France Oil prices jump - oil prices feb 20 2012, crude oil futures feb 20 2012 : Oil prices have jumped to an eight-month high following Iran's ban on exports to the UK and France. Iran, the world's fifth-largest oil exporter, halted sales to the two countries on Sunday in retaliation against tightening EU economic sanctions over its disputed nuclear programme.

On Monday Brent crude rose by $1.52 (95p) to reach $121.10 (£76.39) per barrel in London, the highest since mid-June.

It follows similar rises in recent weeks as tensions between the EU and Iran escalated.

Since December, the price per barrel of Brent crude oil has risen by about 20%.

Monday's rise came as a team of UN inspectors flew to Tehran to press the Islamic Republic over its nuclear programme.

Iran denies Western allegations that it is seeking to make nuclear weapons. The EU enraged Tehran last month when it decided to impose a boycott on its oil from the summer.

Iran responded by threatening to close the Strait of Hormuz, the main Gulf oil shipping lane, and on Sunday went a step further by stopping selling oil to France and Britain altogether.

A statement on the website of Iran’s oil ministry said they would "sell our oil to new customers".

It is a powerful yet largely symbolic message since neither the UK nor France relies on Iranian crude imports.

British firms get under 1% of their oil from Iran because the EU has already imposed sanctions on the country months ahead of the official ban.

Iran was supplying more than 700,000 barrels per day to the EU plus Turkey in 2011 but by the start of this year imports had sunk to about 650,000 in anticipation of the boycott. Hopes for a Greek bailout also buoyed oil prices on Monday.

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