Bloomberg reported that the International Energy Agency warns that proposed sanctions on Iranian oil imports would tighten the global market from the middle of 2012.

The European Union, under the influence of the UK and France, are pushing for oil sanctions against Iran to increase pressure on Tehran over its nuclear program.

As a signatory to the nuclear Non Proliferation Treaty, Iran is legally entitled to develop nuclear technology for civilian purposes.

IEA said that an EU ban could come into force within six months. EU foreign ministers are scheduled to meet on January 23rd 2012 to discuss the issue.

The IEA report said that "A target of six months is gaining traction, since it would dovetail with the US law. This would tend to suggest a measure that would have a material impact on physical supplies from Iran from mid summer onwards."

Two EU officials with knowledge of the talks said on January 13th 2012 that a European embargo of Iranian oil will probably be delayed for six months to let countries such as Greece, Italy and Spain find alternative supplies.

The US tightened sanctions on December 31st 2012, denying access to the US financial system to any foreign bank that conducts business with the Central Bank of Iran.

The IEA said that Iran exported 2.5 million barrels a day of crude in the first 10 months of 2011, including more than 200,000 barrels a day of condensates.

According to the agency, the EU imported about 600,000 barrels a day of oil, while Japan and South Korea bought a collective 550,000 barrels a day. Deliveries into China and India were 550,000 barrels a day and 310,000 barrels a day respectively.

(Sourced from www.tehrantimes.com)