Greece turned the tables this weekend and is said to be looking for some assurances that a potential EU embargo on oil imports from Iran won\u2019t push the Greek economy over the edge, complicating efforts to unveil a sweeping package of sanctions against Tehran on Monday.<\/p>\n
Greece, which bought 14 percent of its imported oil from Iran in the first half of 2011, wants the EU to ensure that any new oil contracts would include terms similar to those in its existing agreements with Iran, which doesn\u2019t require financial guarantees, the diplomat said on the condition of anonymity because the talks are private.<\/p>\n
Vulnerable Position<\/strong><\/p>\n Greece argues it is in a particularly vulnerable position as Iran supplies crude oil to Greece on highly favourable terms that would be difficult to match elsewhere. Greek refiners do not have to make payment until 60 days after receiving shipments.<\/p>\n EU foreign ministers will discuss additional sanctions on Iran over its nuclear program at a meeting in Brussels tomorrow. They may reach a political decision to impose an oil embargo, with further work to alleviate Greece\u2019s concerns in the weeks that follow, the diplomat said.<\/p>\n European diplomats are confident that EU foreign ministers will agree plans to impose a phased ban on the import of crude oil from Iran over the next few months.<\/p>\n The EU also plans to ban the transfer from Iran to Europe of gold and precious metals. This ban on the export of precious commodities is aimed at stopping the Iranian regime selling these assets for foreign currency.<\/p>\n Iran is the fifth largest oil producer in the world at more than four million barrels a day, according to 2010 estimates. The EU is the second largest consumer of crude oil, at 13.7million barrels a day.<\/p>\n In response Iran has threatened to close the Strait of Hormuz, through which about 20 percent of the world’s crude shipments pass, raising fears of global supply constraints.<\/p>\n James Zhang, commodity strategist at Standard Bank in London, said despite countries like Saudi Arabia being able to supply extra oil, it would be difficult for any country to immediately substitute Iran’s entire supply.<\/p>\n<\/p>\n