According to a UN spokesman, "loadings of oil can continue without a pricing mechanism, but until there are UN approved prices, no payments can be made for the oil lifted."

As soon as the Committee, known as the "661 Committee" for the Security Council resolution which established it, agrees on a pricing mechanism with the Iraqi State Oil Marketing Organization (SOMO), payments can resume into the UN-controlled Iraq escrow account. Those payments can include revenue for the oil that was already loaded.

"The Committee has also requested the oil overseers to inform the buyers of its commitment to reach an agreement with SOMO on a pricing mechanism at a fair market value," spokesman Fred Eckhard told reporters at UN Headquarters in New York.

Under the UN "oil-for-food" programme set out in Security Council resolution 986 (1995) and subsequently extended, Iraq can sell its petroleum and petroleum products and use a portion of the revenues for humanitarian goods.