Embargo On Iranian Oil Delayed By Six Months

Iran fishing boat

[credit provider=”U.S. Navy” url=”http://www.navy.mil/management/photodb/photos/120105-N-ZZ999-001.jpg”]

A European Union embargo on Iranian oil will likely be delayed by six months, Bloomberg’s Thomas Penny reports. Sources tell Penny the E.U. is holding for countries including Italy, Greece and Spain to find alternative energy sources.

New York oil prices have fallen 1.8% on the news.

The report is a sharp turn from expectations for the E.U. to impose the embargo by January 23.

“The preparations for the new set of restrictive measures are ongoing with a view of adoption by Foreign Affairs Council on 23 January,” Maja Kocijancic, a spokeswoman for the European Commission, told Business Insider. She declined to comment further.

Iran is the second largest OPEC oil producer, with 3.6 million barrels recovered per day last month.