The head of French oil company Total has said that it would hold off on further investments in Iran in the short term because of the growing political risk following the country's test-firing of a series of missiles.

The company had been committed to act as a partner in the development of the huge South Pars gas field, but it has suggested that this will now not go ahead, threatening Iran's ability to increase gas exports significantly in the short term.

CEO Christophe de Margerie said that the company's reputation could suffer if it were to go ahead on the basis of its memorandum of understanding with the state-owned National Iranian Oil Company to develop phase 11 of the field. The company has said that Iran still represents an attractive strategic area, but that improved relationships between the country and its neighbours and a resolution of tensions over its nuclear programme needed to take place.