European Union governments are expected to agree on Monday new economic sanctions against Iran over its nuclear programme, including plans to phase in an oil embargo.

 

The sanctions follow fresh financial measures signed into law by U.S. President Barack Obama on New Year's Eve, and will mainly target the oil sector, which accounts for some 90 percent of Iranian exports to the EU. Europe is Iran's second-largest oil customer after China.

 

"We want them to think 'This is really getting very, very serious now'," said one European diplomat, as quoted by Reuters.

 

Western countries believe Iran is seeking nuclear bombs; Tehran says its nuclear programme is to generate electricity.

 

Other than the oil embargo, the EU measures are also expected to include sanctions against the Iranian central bank and a ban on trading in gold with the government, diplomats say.