EU sceptical Iran would cut off oil supplies

Iran Mania:

European Union Energy Commissioner Andris Piebalgs said he doubted that Iran would cut oil exports in response to threatened sanctions against it in the row over its nuclear plans, according to AFP.

"I really believe Iran will never use such a step," he said, adding that it "would be counter-productive" for the Islamic republic, which earns a huge slice of its wealth from selling crude oil. READ MORE

Even if Tehran were to do so, the International Energy Agency (IEA) would be able to order compensatory action, he said.

"If there will be a disruption IEA will call for a release of security stocks," he added, noting that these had proved to be sufficient in the case of Hurricane Katrina which devastated the US Gulf coast last year.

The international crisis over Iran's nuclear programme escalated when the Islamic republic resumed sensitive uranium enrichment research on January 10, despite calls by European negotiators to maintain a halt to such activities.

The International Atomic Energy Agency is to hold an emergency meeting on the crisis or February 2, and Western countries hope to gather support for referring Iran to the UN Security Council for possible sanctions.

Iran has issued veiled threats to withhold oil from world markets, even though analysts say this is unlikely.

Iranian Economy Minister Davoud Danesh Jafari cautioned earlier this month that any sanctions against his country could result in a "crisis in the oil sector and especially a rise in prices."