EU’s Iran embargo to raise pressure on Irish motorists

Just weeks after the budget, motorists face another hike in fuel prices after the EU imposed an oil embargo on Iran.

The sanctions over Iran’s nuclear programme involve an immediate ban on all new oil contracts with the Gulf state, while existing contracts will be honoured until July 1. The EU buys about 20% of Iran’s oil exports — more than 600,000 barrels per day.

In response, Iran threatened to close the Strait of Hormuz, the Persian Gulf passageway through which 35% of the world’s tanker-borne oil exports travel from Saudi Arabia, Iran, Iraq, the United Arab Emirates, Qatar and Kuwait.