The European Union agreed to impose an embargo on Iran’s oil exports but are to formally announce the measures later in the day

The European Union agreed Monday to impose an embargo on Iran's oil exports but are to formally announce the measures later in the day.

AFP quoted a diplomat as saying, after early morning talks between ambassadors of the 27 EU nations, held as foreign ministers converged on Brussels for talks, that “there is a political agreement on an oil embargo,” and that the embargo measures would be formally announced later Monday. EU ministers are set to also target the country's central bank, petrochemicals and gold.

The envoys have reportedly agreed an immediate ban on all new oil contracts with Iran, while existing contracts will be honored until 1 July.

Under the new deal, EU governments will have to stop signing new contracts with Iran the moment the ban comes into place, which could be as soon as this week, Reuters news agency reports.

“Iran continues to defy UN resolutions and enriches uranium to 20 percent, for which there is no civilian explanation,” said Britain's Foreign Secretary William Hague as he joined the talks. “It is legitimate for us to increase the pressure on Iran to enter into negotiations with the international community,” Hague added.

EU nations depend on around 20 percent of Iran’s crude oil, with Greece, Spain and Italy the top buyers.

The diplomat also said that EU ministers also agreed to toughen sanctions against Syria.