Iran: Nuke Inspectors Arrive Amid Oil Ban Vote

UN nuclear inspectors have arrived in Iran to investigate the suspected development of atomic weapons - on the day lawmakers are expected to ban oil exports to Europe.

Iran - which could implement the embargo in revenge for new EU sanctions - insists its nuclear programme is peaceful, while Western governments believe it has a military purpose.

The head of the International Atomic Energy Agency delegation said he aimed to "resolve all the outstanding issues with Iran" over the programme.

IAEA deputy director general Herman Nackaerts said: "In particular we hope that Iran will engage with us on our concerns regarding the possible military dimensions of Iran's nuclear programme."

It comes amid fears tensions - already heightened by the recent assassination of Iranian nuclear scientist Mostafa Ahmadi-Roshan - could escalate into military conflict.

Tehran has repeatedly demanded its right to peaceful nuclear technology be recognised by sceptical countries.

Western leaders have claimed its uranium enrichment activities - some of which have been moved to a bomb-proof bunker - go beyond what is needed for atomic energy.

And tensions with the West rose this month when Washington and the European Union imposed the toughest sanctions yet in their campaign to force concessions.

Less than one week after the EU's 27 member states agreed to stop importing Iranian crude from July 1, lawmakers in Tehran are due to debate a bill that would cut off oil supplies to the EU in a matter of days.

The Iranian lawmakers hope to deny the EU a six-month window it had planned to give those of its members most dependent on Iranian oil - including some of the most economically fragile in southern Europe - to adapt.

The head of the state-run National Iranian Oil Company said the export embargo would hit European refiners, such as Italy's Eni, that are owed oil from Iran as part of long-standing contracts.

Ahmad Qalebani told the ISNA news agency: "Generally, the parties to incur damage from the EU's recent decision will be European companies with pending contracts with Iran."

But Robert Smith, a consultant at Facts Global Energy, said: "The Saudis have made it clear that they'll step in to fill the void. It would not pose any serious threat to oil market stability."