Tehran has cut oil supply to Spain after stopping crude export to Greece as part of its countersanctions, unnamed sources confirmed on Tuesday.
Tehran also mulls cutting oil supply to Germany and Italy.
No further details were immediately available. Earlier, Iranian Oil Minister Rostam Qasemi confirmed weekend reports that oil sales to Greece had been halted.
Spain, though, relied on Iran for some 12 percent of its crude imports last year, or around 160,000 barrels per day, according to the International Energy Agency.
In January, the European Union announced a total ban on purchasing Iranian crude, to be implemented in July. Member states have since scrambled to find alternative supplies.
Industry sources say Spain and Greece have significantly reduced imports in the last two months in anticipation of the embargo and because of increasing difficulties in making payments.
The United States and its allies have imposed harsh new sanctions against Iran’s financial and energy sectors since the start of the year to force Tehran to abandon its uranium enrichment activities. Washington suspects it of covertly developing a nuclear weapons capability, accusations Tehran denies.
Talks between Iran and world powers are set to resume in Istanbul on Saturday in the hope of a breakthrough over the dispute.
Iran has steadfastly refused to suspend enriching uranium but has indicated it may be flexible over enriching high-grade uranium that it says is required to feed the Tehran research reactor.
It is unclear what it would want in return but analysts say any deal would undoubtedly revolve around the easing of sanctions against it.
This breaking news has been reported by PressTV.