In November, the US, Canada and the UK announced new sanctions against Iran because it was reported that Iran had carried out tests related to the "development of a nuclear device".
Recently in the Gulf, Iran has been having naval exercises to test-fire missiles. These exercises took place near where around 20% of the world's traded oil passes. Even though this happened, Iran denies that it is trying to develop a nuclear weapons program.
There will be an EU foreign ministers' meeting on January 30, when they will hope to decide on an embargo of oil from Iran. However, even if sanctions are adopted at this meeting, it may be several months before they will go into effect. Oil prices on international markets went up after hearing news of this possible agreement.
According to the BBC, Iran gets more than half of its revenue through the export of crude oil. If Europe stops buying it, Iran will have to turn to countries in Asia to buy it. These countries will most likely demand a discount.
Last week President Obama signed a bill into law that cut-off foreign companies that do business with Iran's central bank from the US financial system.
It is believed that this is what needs to be done to try to control Iran economically. A US State Department spokeswoman said, "These are the kinds of steps that we would like to see not just from our close allies and partners in places like Europe but from countries around the world."
-Amelia Hernigle
http://www.bbc.co.uk/news/world-middle-east-16418589
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