Iran nuclear crisis: EU moves towards crude oil ban

The move is expected to be announced formally at an EU foreign ministers' meeting at the end of January.

The US, which recently imposed fresh sanctions on Iran, welcomed the news.

Iran has dismissed the threat of new sanctions and denies Western claims that it is trying to develop a nuclear weapons programme.

Iran has also denied that a record low of its currency this week was linked to punitive US measures against its banks.

Oil prices on international markets rose on news of the EU agreement.

"We have an [EU] foreign ministers' meeting on January 30, and on this occasion I hope we will be able to take the decision on the embargo of oil and petrol from Iran", said French Foreign Minister Alain Juppe.

"We have to reassure some of our European partners who purchase Iranian oil. We have to provide them with alternative solutions", he added.

On Tuesday France had called for "stricter sanctions" on Iran.

However, even if sanctions are adopted at the end of the month, it may be several months before they are implemented.

'Tightening the noose'

"These are the kinds of steps that we would like to see not just from our close allies and partners in places like Europe but from countries around the world", said US State Department spokeswoman Victoria Nuland.

"We do believe that this is consistent with tightening the noose on Iran economically," she added.

The Iranian state gets more than half of its revenue through the export of crude oil, says the BBC's James Reynolds; Kazinform cites BBC.

For full version go to www.bbc.co.uk