EU to agree on Iran oil imports ban, central bank sanctions

Reuters reports that the sanctions follow fresh financial measures implemented by US President Barack Obama. The sanctions aim to target the oil sector. The EU currently buys around 20% of Iran's oil exports.

Western countries believe Iran is seeking nuclear bombs. However, Tehran has repeatedly denied it is trying to develop nuclear weapons, but insists its nuclear programme is to generate electricity.

Tehran also said that it is talks and not sanctions, the only way to resolve the dispute.

The EU measures are also expected to include sanctions against the Iranian central bank and a ban on trading in gold with the government, diplomats say.

EU foreign ministers meeting in Brussels are expected to agree to phase in the embargo, allowing existing contracts to be fulfilled for several months after the ban is imposed.