EU's Iran oil embargo held up by Greek call for guarantees

(BRUSSELS) - European Union talks to agree an oil embargo against Iran were held up Friday as the bloc sought new suppliers for Greece who could match the conditions offered by Tehran to the cash-strapped nation.

Diplomats said Greece, which relies on Iranian oil for more than a third of its total oil imports, had concluded "good financial arrangements" with Iran that included 60-day payment and no financial guarantees.

"Greece has agreed to stop but the question is who can compensate," said a diplomat speaking on condition of anonymity.

As Greece is saddled with a mountain of debt, new suppliers are expected to ask for guarantees.

"We need to have a political agreement" on the oil embargo, the source said, "but a financial solution will take longer."

The EU imported some 600,000 barrels of Iranian oil per day last year, according to the International Energy Agency, making it a key market alongside Indian and China, which has refused to bow to pressure from Washington.

Iranian oil accounted for 34.2 percent of Greece's total oil imports, 14.9 percent of Spain's and 12.4 percent of Italy's in the first nine months of last year, according to the latest EU statistics.

All three nations are facing financial distress.