Iran moves funds ahead of possible UN sanctions

EMBROILED in a nuclear standoff with the West, Iran said yesterday it was moving funds out of Europe to shield them from possible UN sanctions and flexed its oil muscles with a proposal to cut OPEC output.

“Yes, Iran has started withdrawing money from European banks and transferring it to other banks abroad,” said a senior Iranian official, who asked not to be named.

Central Bank governor Ebrahim Sheibani was quoted earlier as saying Tehran had started shifting funds, but he sidestepped a question on whether the assets would go to accounts in Asia. Financial markets reacted nervously to the uncertainty about Iran’s foreign holdings, estimated at over €24.7 billion, helping send oil to a four-month high above $67 (€55).