Iran has halted oil sales to British and French companies, the nation's oil ministry has said.

Last month the EU countries agreeded to terminate all oil transactions with Tehran in aid of pressurising them to cease enriching uranium, which could be used for civilian nuclear purposes but also to build nuclear warheads.

Although Iran consistently reiterates that their nuclear programme is peaceful, the UN’s International Atomic Energy Agency has information suggesting that Iran has carried out tests “relevant to the development of a nuclear explosive device”. (www.bbc.co.uk/news, 19/02/2012)

The EU oil embargo, agreed last month, was planned so that countries such as Greece, Spain and Italy, who rely heavily on Iranian oil imports - had time to secure alternative sources. Iran’s Oil Minister Rostam Oasemi explained that the EU embargo wouldn’t hurt Tehran as the European countries combined only purchase 20% of Tehran’s oil.