Iran’s State TV (Press TV) says Iran is cutting off oil supplies to six European Union countries: France, the Netherlands, Spain, Portugal, Italy and Greece. It said Iran will only sell to those European countries that agree to strike long-term agreements and guarantee payment.”
The French and the Dutch governments had become among the most anti-Muslim, anti-Iran, ruling elites in recent years. Spain, Portugal, Italy and Greece are the most vulnerable economies in the European Union. So after a long time of Western bashing, Iran has responded with a significant retaliation. Counter-sanctions against France will hit President Sarkozy’s reelection prospects while, at the same time, hitting the weakest European Union economies has implications for EU unity.
However, the Guardian newspaper later reported that Tehran had denied cutting off oil supplies. What is known for sure right now is that the ambassadors of the six countries were called in to the Foreign Ministry in Tehran today and held separate talks with a senior Iranian official.
Oil prices began to rise after the initial Press TV report. Whatever turns out to be the case (supplies cut off or not), it shows how jittery the oil markets are.