European countries 'damaging own economies' with oil embargo, Iran claims Observers believe this is a risky line to take: the regime has left itself with no alibi for an economic crisis that has seen the value of the rial, the national currency, fall by around 50 per cent against the dollar in the last month alone. The rial lost 10 per cent of its value in the 24 hours after the European Union's announcement of oil sanctions. Nonetheless, the oil ministry in Tehran said the embargo would leave Iran unscathed while inflicting "heavy economic loss" on the "people of Europe, who have been affected by crisis." The result would be a "slowdown in global economic growth, particularly in the crisis-hit Western world," said the statement. Heydar Moslehi, the intelligence minister, told Tehran's official news agency that Iranians would prosper from the sanctions, hailing them as "opportunities" that have "already brought lots of benefits to the country." Ali Ansari, an Iran specialist at St Andrews University, said the regime had two standard responses to sanctions. One is bravado, and that's what we've been seeing. The second is to blame the foreigner for all the economic problems - and they tend to chop and change between them depending on who they're talking to. The regime had no concern for the logical contradiction between these two explanations, he added. In reality, the European Union's decision to impose an embargo had taken Iran by surprise. "The psychological impact on Iran will be great as they will not have considered that the Europeans would take such united action," said Mr Ansari. Britain, America and France responded to Iran's earlier threats to close the Strait of Hormuz, the vital waterway at the entrance to the Gulf, by sending a joint flotilla of six warships through this channel on Sunday. The deployment included HMS Argyll, a Royal Navy Type 23 frigate. Philip Hammond, the Defence Secretary, described this as a "clear signal" to Iran, adding that further reinforcements could be sent if required. "The UK has a contingent capability to reinforce that presence should at any time it be considered necessary to do so," he said. HMS Daring, Britain's newest and most capable warship, is currently en route to the region.