EU Imposes New Iran Sanctions

The European Union has given a boost to the U.S. strategy of forcing Iran into negotiations on its nuclear program by attempting to reduce its funding to a trickle.

The EU on Monday announced a ban on the import of Iranian crude oil and petroleum products, and a handful of other sanctions, which, as reported by CNN, also include: freezing the assets of Iran's Central Bank in the EU; banning trade in gold, diamonds, and precious metals; and stopping the export of "key petrochemical equipment" from the EU to Iran.

The EU is Iran's second largest buyer of crude oil, following China. Reuters reports that the new sanctions ban all new contracts with Iran for imports, purchasing, or transportation of crude oil and petroleum products, but allow those with current contracts to honor them through July 1.

According to Fars, Iran's semi-official news agency, Iran has restated its previous threat to close the Strait of Hormuz if sanctions are not lifted. About 17 million barrels of oil are carried through the Strait of Hormuz a day, and it is the only passage to and from the Persian Gulf and the open sea. The United States has previously responded to the threat by stating they would not let that happen. 

On Monday, Mohammad Ismail Kowsari, the deputy head of Iran's committee on national security warned that the strait "would definitely be closed if the sale of Iranian oil is violated in any way," adding that the United States and its allies would not be able to open the strait should Iran decide to close it.

CNN explains that the new sanctions are tough, but still contain plenty of loopholes, partially because a complete loss of Iranian oil exports would send the price of oil to the stratosphere. As the Associated Press notes, the United States has not yet put into effect the sanctions enacted on Iran's Central Bank.