Spain backs Iran oil embargo despite heavy imports

(AP) STRASBOURG, France—Spain said on Wednesday it will back a possible European Union oil embargo against Iran even though it would inflict "huge damage" on its two major oil importers.

Foreign Minister Jose Manuel Garcia-Margallo said on the eve of Thursday's EU meeting on the issue that Spain would give its support to an embargo that would start July 1. The EU is considering an embargo in the hope of choking off funding for the country's nuclear program.

The decision is still being considered by EU nations, and cash-strapped Greece has indicated it wants to stall any action because it is a big importer of Iranian oil and gets the best payment terms from Tehran.

The EU ambassadors meeting Thursday comes ahead of next Monday's meeting of EU foreign ministers.

Garcia-Margallo said that Spain already discussed the issue with Repsol and Cepsa, the two companies that import the most Iranian oil, which accounts for about 20 percent of Spain's overall imports.

"They told me it is OK. It is going to be a huge damage to us, but it is doable if we find other sources of supply," Garcia-Margallo said through a translator after meeting with European Parliament officials. He did not elaborate.

Spain would be looking for Saudi Arabia and other Gulf countries to make up the shortfall, he said.

Iranian officials maintain their nuclear program is meant solely for peaceful purposes but the international consensus is that it is aimed at building weapons.

France has said there was no doubt Iran was moving toward a nuclear weapon and also backs an embargo. EU foreign ministers agreed in December to work toward a ban on Iranian oil and sought a decision by the end of the month.

Garcia-Margallo said Spain would be looking for the July 1 date to start the embargo "so contracts under way can be implemented."

Iran's OPEC governor said on Tuesday that an EU embargo on Iranian oil would be "economic suicide" for Europe. Tehran has warned it would respond to an embargo by shutting the Strait of Hormuz, which is used to transport about a fifth of the world's oil.