European Union diplomats have agreed on the "principle of an oil embargo", announced EU diplomats on Wednesday.
Following on from economic sanctions, the embargo aims to curtail Iran's alleged nuclear programme.
Member states are yet to agree on the implementation of the embargo.
One EU diplomat, speaking anonymously to Reuters, said,
"A lot of progress has been made. The principle of an oil embargo is agreed. It is not being debated any more."
Confidant of the backing of China however, Tehran remains defiant, and warned any such move by the EU would destabilise an already fragile global economy.
"We could very easily replace these customers," said the International Director of the National Iranian Oil Co, M. Qamsari.
US Treasury Secretary, Timothy Geither is to travel to China and Japan next week in order to discuss sanctions on Iran, informed the US Treasury Department, who have endorsed the EU's stance.
