UN Ship Ban Could Hit Iran Oil Exports

A UK proposal to cut shipping lines under a draft UN sanctions resolution could temporarily curb Tehran's ability to export oil to world markets, according to a report by Reuters today.

Confidential reports obtained by the news media organisation suggest the UK denying rights of passage to Iranian merchant ships in foreign waters and the withdrawal of landing rights for Iranian aircraft are among proposed plans.

The proposal could have a short-term effect on Iran's supply to world oil markets even though oil would not be the target. Iran pumps 3.85 million barrels of crude oil a day and exports 2.4 million barrels of the oil by sea.

Iran is set to enter two-day trilateral talks on Friday on the India-Pakistan-Iran (IPI) gas pipeline where the three countries will discuss issues related to transportation charges and transit fees for the 2,300km-long gas pipeline.

India will also be holding bilateral talks with Pakistan one day before the talks on 27 June over the same issue.

The pipeline, which is planned for 2010, will initially carry about 60 million cubic meters of gas from Iran everyday which will then be split between India and Pakistan equally.