European Union ambassadors agreed on Monday, Jan 23, to impose an embargo on Iranian oil imports, but decided to delay the full implementation of the ban until July 1, Reuters quoted an EU diplomat as saying.

Their agreement was the final step before EU foreign ministers can give their formal approval to the measure. The EU's 27 foreign ministers meet in Brussels on Monday.

"(EU ambassadors) have agreed on Iran sanctions," the senior EU diplomat said, speaking on condition of anonymity.

Under the deal, EU governments will have to stop signing new contracts with Tehran from the moment the ban comes into place - probably as soon as this week - but will be able to fulfill existing contracts until July 1.

EU ministers are also expected to agree extra restrictive measures on Iran's central bank at Monday's meeting, but no details on those steps were immediately available.