IANS | 25 Jan, 2012
The European Union's (EU) oil embargo against Iran will push oil prices higher and undermine the world economy, Tehran warned Tuesday.

The EU has used oil as a "tool for political objectives" which will impact Europe and countries outside the region, the oil ministry said. Iran has already adopted necessary steps to counter the challenge, Xinhua quoted a statement from the ministry as saying.

Monday's oil embargo has already pushed oil prices higher and spurred fresh supply concerns. The embargo will start from July 1 so as to allow major Iran oil importers like Greece, Italy and Spain to find alternative suppliers.

As of Monday's close, light, sweet crude for March delivery gained $1.25, or 1.3 percent to settle at $99.58 a barrel on the New York Mercantile Exchange.

In London, Brent crude for March delivery also rose and last traded above $110 a barrel.