DUBAI - Iran dismissed a European Union oil embargo which took effect on Sunday and said it was fully prepared to counter the impact of sanctions with a $150 billion war chest of foreign reserves.

The EU ban on crude imports is part of a push by Western countries aimed at choking Iran's export earnings to try to force it to curb a nuclear program they fear includes weapons development. Tehran says it has no such plan.

"All possible options have been planned in government to counter sanctions and we are fully prepared to deal with them," Iranian Oil Minister Rostam Qasemi said in comments on the ministry's website.

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