Sanctions on Iran squeeze fuel supplies: IEA

Upgraded sanctions against Iran over its nuclear policy have hit supplies of fuel and will crimp development of the country`s oil and gas industries, the IEA said on Tuesday.

Last Updated: Jul 13, 2010, 20:08 PM IST

Paris: Upgraded sanctions against Iran over
its nuclear policy have hit supplies of fuel and will crimp
development of the country`s oil and gas industries, the IEA
said on Tuesday.

Iran, a major oil exporter, is struggling with fuel
supplies and rationing at home, and with strong consumer
hostility to attempts to phase out fuel subsidies, the
International Energy Agency commented.

In response, the government was encouraging a switch to
vehicles powered by natural gas.

US and EU sanctions, in addition to squeezing current
fuel supplies and the future of the energy industry, would
also hamper attempts by Iran to build refineries to get petrol
flowing to its home market.

The IEA said: "Tougher US sanctions aimed at squeezing
Iran`s energy and banking sectors have deepened the Islamic
Republic`s international isolation and significantly reduced
its sources of fuel.

"As a result, French major Total has joined Shell, BP,
Reliance, and Glencore in suspending sales of refined products
to Iran."

Until now, the shortfall had been made good by Chinese
companies Unipec and Chinaoil and more recently by Tupras of
Turkey.

PTI