Iran and Venezuela Sign Import Oil Pact

Iran will buy gasoline from Venezuela following a controversial deal struck today (July 3) that will help the nation secure oil imports in light of its planned fuel rationing scheme, according to reports.

Neither nation would disclose the sum of the deal, or just how much oil Iran would add to the 25 cargoes of fuel a month it receives from India, the Netherlands, France and the United Arab Emirates.

The deal will make ties between the two nations much stronger – Venezuela has already created a stir by signing a petrochemical plant deal despite growing UN sanctions against the nation, which is the world's second largest producer of oil.

The US believes that gasoline imports to Iran, which is currently affected by UN sanctions imposed following accusations that Tehran is building atomic bombs, will be used as leverage in the sensitive affair.

Iran's lack of refining infrastructure means the nation relies heavily on oil imports for gasoline.

Venezuela recently banned oil companies Exxon-Mobil and Conoco Phillips from producing oil in the country, leaving control of the company's oil fields in the hands of the government.