The EU will immediately ban new oil deals with Iran and implement a total boycott of Iranian oil in July 2012, under sanctions discussed by the 27 Foreign Ministers today.



Sanctions could also target the activities of a number of Iranian companies, individuals and financial institutions, including the country's central bank.



British Foreign Secretary William Hague said the measure was part of an unprecedented set of sanctions. “I think this shows the resolve of the European Union on this issue.”



Western leaders insist Iran is on a dangerous path towards acquiring nuclear weapons and demand it halts its program. Tehran consistently denies such ambitions, saying its nuclear intentions are civilian, not military.



It’s thought France sought immediate sanctions against Iran while others, including debt-laden Greece, reportedly asked for a 12-month stay. Italy, Spain and Greece account for up to 68 per cent of Iranian oil consumed in Europe.



The EU embargo follows tough US sanctions approved earlier this month. Taken together, they remove 2.6 million barrels of oil from international markets, driving oil prices up and adding to global economic instability.



Doubts remain on whether the sanctions will have the desired effect. China remains the biggest buyer of Iranian oil, and so far, it has not agreed to any sanctions, and could possibly take up the quota now banned by the west.