Australia announced on Tuesday that it will support the new economic sanctions passed by the European Union against Iran, calling member nations and other countries to stop trading with Iran.

The fresh sanctions made known on Monday will stop the flow of oil from Iran into EU nations while at the same time prohibiting all transactions with the country's central bank.

Already under international pressure, Iran channels its global trade activities through its central bank, which facilitates the shipments oil and precious metals out of the Islamic Republic.

Foreign Minister Kevin Rudd has acknowledged that the new EU measures were meant to persuade Iran to discontinue its nuclear program, which Tehran has consistently declared was solely meant for peaceful and industrial use.

Rudd, however, said that Iran has been displaying unacceptable behaviors lately, including threats of closing down trade activities in the strategic Strait of Hormuz, which accommodates big chunk of oil shipments headed to many countries around the world.

In a statement he issued while in London, Rudd expressed his support for the latest EU sanctions, which were also backed by the United States.

"We in Australia will undertake precisely the same parallel action for Australia," Rudd was reported by Reuters as saying on Tuesday.

"This is not a piece of idle philanthropy on the part of Australian foreign policy. This costs, but it is a cost worth paying," the former Prime Minister added.

The new embargo, Reuters said, will be gradually implemented to allow countries with existing trade agreements with Iran to work their way of the deals over the next five months.

The time table is also EU's way of making sure that EU nations dealing with financial woes will not face more problems, according to British Foreign Minister William Hague, who also met with Rudd in London.

Britain, Hague said, had intended for the sanctions to take effect a little sooner but the EU must also consider the situation of member nations, especially in the case of Greece.

The British official issued assurance that Greece would be duly assisted in the event the embargo would restrict the flow of the country's required oil supplies.

"If Greece has further difficulties after that with the purchase of the necessary quantities of oil, of course we and other countries will stand ready to help," Hague told Reuters.