LOS ANGELES, CA (Catholic Online) - Under the new agreement, all new contracts for crude oil and petroleum products between Iran and any of the EU's 27 member states will be forbidden while existing contracts will be suspended by June.

The U.N.'s International Atomic Agency also confirmed on Monday that a high-level visit to Iran would take place from January 29-31 to discuss Tehran's nuclear activities.

"I think this shows the resolve of the European Union on this issue," British Foreign Secretary William Hague said.

"Today's sanctions show how serious. EU member states are about preventing nuclear proliferation and pressing Iran to return to the negotiating table," he said.

French and British warships had joined a U.S. carrier aircraft group over the weekend and passed through the Strait of Hormuz, the narrow passage between Iran and Oman. Iran has threatened to close the strait in retaliation to tightening sanctions, imperiling much of the world's oil supply.

The west believes that Iran's uranium enrichment program is part of an effort to build a nuclear bomb, but Iran says the program is to generate electricity.

France, Britain and Germany declared after the decision that they were willing to negotiate with Iran if it was ready to talk seriously about its nuclear program.

"We call on Iran's leadership immediately to suspend its sensitive nuclear activities and abide fully by its international obligations," said the countries in a joint statement.

Iran's foreign ministry remained defiant to the sanctions, calling them "unfair" and "doomed to fail."

"The method of threat, pressure and unfair sanctions against a nation that has a strong reason for its approach is doomed to fail," Ramin Mehmanparast, the ministry spokesman reported on the state broadcaster's Web site.

However, many are questioning the efficacy of the embargo. Sadegh Zibakalam, a professor of political science at Tehran University told Al Jazeera that EU sanctions would not "terribly affect" Iran.

"The real problem for Iran comes [from] Asia and not from Europe," Zibakalam said. "That is to say if China, South Korea, Japan ... and India move towards ... reducing their oil from Iran, that will create a serious problem for Iran."

Zibakalam points out that four Asian nations purchase about 59 percent of Iran's oil each year, while EU countries account for only 18 percent.

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