Brent oil price trades over $120 as Iran stops crude exports to UK and France

The price of a barrel of Brent crude oil surpassed $120 in early trading this morning after Iran said over the weekend that it has stopped all crude oil exports to Britain and France in a dispute over its nuclear programme.

Latest Brent Oil Price

In London, Brent crude oil futures for April 2012 delivery was trading at $120.49 a barrel, 07.30 GMT this morning on the ICE Futures Exchange.

Iran Oil Ban to UK and France

Iran’s oil ministry said yesterday it stopped oil shipments to British and French companies in an apparent blow against the EU after the bloc imposed sanctions on Iran’s crucial fuel exports. They included a freeze of the country’s central bank assets and an oil embargo set to begin in July.

Alireza Nikzad, a spokesman for the Iranian oil ministry said: “Exporting crude to British and French companies has been stopped … we will sell our oil to new customers.”

The move will have little effect on UK oil refiners, which get well under 1 percent of their oil from Iran since the EU has already slapped sanctions on the country and has vowed to stop buying all Iranian oil by July. Iran was supplying more than 700,000 barrels a day to the EU last year but this had already been cut back by 300,000 before yesterday’s move.

Iran’s Nuclear Programme

The EU sanctions along with other punitive measures imposed by the US are part of Western efforts to derail Iran’s disputed nuclear program, which the West fears is aimed at developing atomic weapons. Iran denies the charges, and says its programme is for peaceful purposes.

Meanwhile, William Hague the UK’s Foreign Secretary repeated his warning that a nuclear armed Iran would result in another cold war in the Middle East.

“They would either be attacked and there would be a war, or there would be a cold war in which Iran for the long term would be subject to these very intense economic sanctions.” Hague said in comments made to the BBC over the weekend.

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Brent oil price trades over $120 as Iran stops crude exports to UK and France