Iran has announced that it has halted crude oil sales to the U.K. and France in retaliation for the European Union's embargo on importing oil from the Middle Eastern nation.

Iran's oil ministry said on its Web site that it will sell its oil to new customers instead of French and U.K. companies.

The country has also dispatched two warships to the Mediterranean Sea and launched a large-scale ground defense drill in its central desert region.

Meanwhile, the growing tension has driven up global oil prices. The cost of Dubai crude climbed to nearly 120 dollars a barrel on Friday, the highest since May.

Confrontation between Iran and Western nations continues to rise as the U.S. and the EU discuss additional sanctions on Tehran.