“Exporting crude to British and French companies has been stopped … we will sell our oil to new customers,” spokesman Alireza Nikzad said on Sunday.
Brent crude for April delivery rose as high as $121.15 in early morning trade in London, before easing back to $120.46, up 88 cents on the day.
The European Union in January decided to stop importing crude from Iran from July 1 over its disputed nuclear programme, which the West says is aimed at building bombs.
China rebuked Iran’s move on Monday, and called for “dialogue and negotiation,” to resolve the dispute.
“We have consistently upheld dialogue and negotiation as the way to resolve disputes between countries, and do not approve of exerting pressure or using confrontation to resolve issues,” Chinese Foreign Ministry spokesman Hong Lei told Reuters.