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EU ban on Iranian oil: What you need to know

2 July 2012 Last updated at 13:15 BST

The European Union stopped buying oil from Iran since 1 July in order to target the country's main source of income.

And even though it was feared that such a move would increase the price of oil in the global markets, Saudi Arabia is pumping more oil to minimize the impact.

BBC Persian's Amir Paivar explains what's at stake.