Due to European Union sanctions, starting July 1, Europe's Protection and Indemnity (P&I) clubs will no longer be able to insure tankers carrying Iranian crude oil. The EU's efforts to punish Iran for its nuclear program means that Iranian oil buyers will lose access to a market that insures 95% of the world's tanker shipments against spills and collisions.

The market seems to remain complacent about this – forecasters do not expect sales to drop dramatically, and traders are hoping increased production in Saudi Arabia and North America will be sufficient to offset the drop in Iranian exports.

The lack of coverage could stop exports entirely. Major importers have lobbied to relax or remove the ban without success.

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