EU oil embargo on Iran comes into effect, Iran downplays sanctions

As new European Union sanctions targeting Iran's vital oil industry took effect Sunday, Tehran acknowledged the measures aimed at reining in its disputed nuclear program were taking a toll.      
However, Iranian leaders have insisted they will press ahead with their atomic program, regardless of the Western restrictions and others imposed by the U.N. Security Council.

The EU, which accounted for around 18 percent of Iran's oil exports, said earlier this week that all contracts for importing Iranian oil will have to be terminated from Sunday. Also, European companies will no longer be involved in insuring Iranian oil.    

Iranian Oil Minister Rostam Qasemi sought to downplay the embargo as just the latest punishment in decades of ineffective sanctions. "    

"I do not see a problem in our enemies starting the sanctions as of today, since these sanctions have existed for many years and nothing has happened and one should not anticipate anything new," he was quoted as saying on Sunday.        

The Iranian rial has slumped against international currencies, with the unofficial rate spiking at around 21,000 to the dollar this week, up from around 19,000. That's down from a high of around 23,000 in January, but still far above the rate of around 11,000 about 18 months ago.        

The price of staples has skyrocketed as well.

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AP/LBCI