Mohammadali Khatibi, the Iranian representative in OPEC, said Iranian crude customers can insure their ships thorough Iranian insurance companies.

In an interview with Iranian state media, Khatibi said Iranian oil customers have two options: to use their own ships to transfer the oil or use the Iranian fleet.

He said the insurance offered by Iranian companies will provide coverage against all forms of risk and hazard.

European Union sanctions that took effect on July 1 impose an oil embargo on Iranian crude imports and also prohibit European insurance companies from offering coverage to Iranian oil shipments.

Oil tankers could require up to $1 billion in insurance against possible oil leakage and contamination of sea water.

Iranian oil exports have reportedly fallen by 1 million barrels a day since the latest EU and U.S. sanctions took effect.