The European Union in January passed sanctions targeting Iran's oil sector. The Council of the European Union said the sanctions will go into force as planned starting Sunday.
"Contracts for importing Iranian oil that were concluded before 23 January will have to be terminated by 1 July," the statement read. "From the same date, EU insurers may no more provide third-party liability and environmental liability insurance for the transport of Iranian oil."
The sanctions are meant as punishment for Iran's nuclear program. International delegates met with Iranian officials in Istanbul, Baghdad and Moscow to get assurances that the program was peaceful. The most recent talks in Moscow ended with few developments.
Governments potentially affected by European sanctions had since January to make preparations for an embargo of Iranian crude. The IEA has said oil markets are well-supplied as Saudi Arabia, among others, has sought to provide assurances to some of Iran's customers.