U.S. Objection Will Delay Iraq Oil Sales
The United States objected Monday to Iraq’s plan for distributing food and medicine purchased with oil revenues, a move expected to delay Baghdad’s return to world petroleum markets.
Secretary-General Boutros Boutros-Ghali must approve the plan before Iraq can resume exports under the oil-for-food agreement.
But U.S. officials said Iraq was seeking to use the revenues to repair damage from the Gulf War.
The objections by the United States, the most influential U.N. member, could hold up the deal.
News of the U.S. rejection helped drive up oil futures Monday on the New York Mercantile Exchange. August prices settled at $21.53 a barrel, up 61 cents on the day.