Iran has stopped selling oil to British and French companies in retaliation to upcoming European Union sanctions on oil, Reuters reports. In January, the EU announced it would stop importing oil from Iran beginning in July 2012. The EU sanctions came in response to Iran's nuclear program. From Reuters:
The European Commission said last week that the bloc would not be short of oil if Iran stopped crude exports, as they have enough in stock to meet their needs for around 120 days.
Industry sources told Reuters on February 16 that Iran's top oil buyers in Europe were making substantial cuts in supply months in advance of European Union sanctions, reducing flows to the continent in March by more than a third - or over 300,000 barrels daily.
France's Total has already stopped buying Iran's crude, which is subject to fresh EU embargoes. Market sources said Royal Dutch Shell has scaled back sharply.
Among European nations, debt-ridden Greece is most exposed to Iranian oil disruption.