Several media have reported that Iran announced it will stop oil shipments to the UK and France. The effects are likely to go far beyond these nations. Brent crude currently trades above $120, and the issues of gas prices as a drag on GDP growth in developed nations has already been raised by many economists. It is widely felt that if Brent continues to rise, even modestly, that gas prices in the US could go to $4, a level which could throttle consumer spending.
Iran ordered a halt to its oil sales to Britain and France on Sunday in a move seen as retaliation against tightening EU sanctions, as a team of U.N. inspectors flew to Tehran to press the Islamic Republic over its disputed nuclear program.