World's Biggest Oil Traders Cut Ties With Iran

Facing the threat of U.S. sanctions, three of the world's largest oil traders have quietly stopped shipping petroleum to Iran, the Financial Times reports.

Energy executives said that Vitol, Glencore and Trafigura, which together had supplied Iran with half of its daily petroleum imports, couldn't ignore mounting political pressure to abandon their relationships with the Islamic republic.

"The political and public relations problems more than outweigh the business rewards," said one executive.

Thus far, non-U.S. companies that sell petroleum to Iran are not affected by sanctions.

Monday's report indicates an early victory for the Obama administration in its attempt to slow Iran's nuclear capabilities. Earlier in the day, lawmakers on Capitol Hill pushed to approve legislation that would punish companies that do business with Tehran in violation of U.S. sanctions.

"We need to send a strong, clear signal to Iran that until it halts its nuclear ambitions, the dangerous state will be denied the benefits of access to the global economy," said Democratic Senator Kirsten Gillibrand.

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