European Union foreign ministers have today formally adopted an oil embargo against Iran over its nuclear programme.

European Union foreign ministers have formally adopted an oil embargo against Iran over its nuclear programme.

The sanctions involve an immediate ban on all new oil contracts with Iran, while existing contracts will be honoured until 1 July.

Tehran denies that it is trying to develop nuclear weapons and says talks and not sanctions are the only way to resolve the dispute.

The EU currently buys about 20% of Iran's oil exports.

Meanwhile, the Pentagon said the US aircraft carrier USS Abraham Lincoln, as well as a British Royal Navy frigate and a French warship, have passed through the Straits of Hormuz at the entrance to the Gulf without incident in the wake of Iranian threats to block the trade route.

'Substantial impact'

Under the new deal, EU governments are expected to stop signing new contracts with Iran when the ban comes into place - which could be as soon as this week, Reuters news agency reports.

All existing contracts will have to be phased out by 1 July.

http://www.bbc.co.uk/news/world-europe-16674660

Doesn't look that substantial tbh.. but it'll be interesting to see how it progresses.