LONDON - Italy's Eni, which has been receiving payments in oil from Iran for debts, is reworking the deal and is unlikely to import crude in July after European Union sanctions on Tehran take effect, market sources said on Thursday.
The unexpected decision by the Italian oil major, which is exempted from the embargo on imports, will lead to a complete halt in Iranian crude supply to Europe in July.
"Even though Eni is able to continue importing cargoes, because of the sanctions there are other details it needs to organize," a person with knowledge of the deal said. He declined to be named due to the sensitivity of the matter.
The market sources said it was not clear when Iran's crude deliveries to Eni would resume.