Iran cautions West against oil embargo

TEHRAN, Iran (AP) – Iran’s OPEC governor said Tuesday a European Union embargo on Iranian oil would be “economic suicide” for Europe, the latest stiff statement reflecting Iranian concern about the prospect of deeper sanctions over its nuclear program.

Iran is OPEC’s second largest oil producer, and oil exports account for 80 percent of Iran’s foreign currency income. Iran sells about 20 percent of its oil exports to Europe.

European nations are considering whether to go along with new U.S. legislation outlawing transactions with Iran’s central bank, indirectly limiting Iranian oil shipments by making it harder for customers to pay for them. The law takes effect later this year.

Iran has reacted with a string of strong pronouncements. It threatened to close the Strait of Hormuz, where most of the Gulf’s oil exports pass, it scheduled war games in the area of the strait, it warned the U.S. not to send an aircraft carrier back into the Gulf — and now it is cautioning Europe over the consequences of abandoning Iranian oil.