Kenya Cancels Iran Oil Deal after Pressure

Nairobi on Wednesday canceled an oil import deal with Iran that would have broken U.S. and EU embargoes after international pressure, officials said Wednesday.

"It has been canceled - although effectively we never signed any agreement with the Iranian government, what we had was a memorandum of understanding with Iran," the energy ministry's permanent secretary Patrick Nyoike told Agence France Presse.

Kenya had reportedly accepted to import up to four million tons of crude oil per year through the Iranian National Oil Company.

"Because of international pressure, we have withdrawn that understanding," Nyoike said.

Both the European Union and the United States have placed embargos on Iran's vital oil exports.

Outgoing U.S. ambassador to Kenya Scott Gration had earlier on Wednesday told journalists "there are sanctions that are in place for people that are buying oil and products from Iran."

The oil deal cancellation follows the arrest last month of two Iranian men in possession of explosives, who Israeli Prime Minister Benjamin Netanyahu has claimed were plotting attacks against Israeli targets.

On June 25, a Kenyan court charged two Iranians with illegal possession of 15 kilograms (33 pounds) of powerful explosives. Both men have denied the charges.