EU planning new sanctions on Iran

European governments are pushing for stronger sanctions against Iran, in particular a contentious embargo on Iranian oil, diplomats said on Wednesday.EU foreign ministers meet in Brussels on Thursday to map out Europes response to a report by the International Atomic Energy Agency in recent weeks that suggested Iran has worked on designing an atom bomb.Much has already been agreed - the EU will add some 180 names to a list of people and entities targeted by pan-European sanctions - but a number of EU capitals have yet to decide exactly how much economic pressure the EU should apply on Iran over its nuclear programme, which it says is peaceful.Tuesdays attack on the British embassy by dozens of students and protesters angry over Britains unilateral sanctions could go some way towards convincing them stronger action is needed, diplomats said.From a political point of view this (attack) cannot, I think, work in the direction of EU member states wanting to ease pressure on Iran, the diplomat said. On the contrary.The whole question is do we go further and add a new set of sanctions apart from those adopted in the past.French Foreign Ministry spokesman Bernard Valero said that following the embassy attack, Paris would push foreign ministers in Brussels to look at sanctions beyond what had already been agreed, especially proposals made by President Nicolas Sarkozy to freeze the central banks assets and to ban oil imports.French sources say that Paris feels the attack has added to the already long list of factors playing against Tehran and those that have wavered will be more inclined to listen to the French proposals.In the past week, some EU capitals have insisted it is too early to adopt them, concerned about the economic consequences of tighter restrictions on a big OPEC oil producer.Experts says a European embargo could boost global crude prices at a time when Europe is teetering on the brink of recession and struggling with a mounting debt crisis.Greece, in particular, has expressed reluctance, EU diplomats say. Traders say debt-strapped Athens has been relying on Iranian oil, which comes with an attractive financing offer at a time when banks are increasingly denying it credit.