Increasingly warm relations between Iranian president Mahmoud Ahmadinejad and Latin American leaders are a source of growing concern for the European Union and United States.

New measures aimed at hurting Iran's oil industry were introduced by U.S. President Barack Obama on new year's eve. The sanctions forbid American companies from dealing with the Islamic Republic's central bank and encourage other countries to follow suit.

Close on the heels of the U.S., the EU is also expected to officialize its ban on Iranian oil during a council meeting in Brussels on January 23.

These measures are aimed at forcing Tehran to halt what western governments believe is the development of a nuclear weapons program - a charge Iran denies. Observers say Ahmadinejad is now attempting to circumvent the punitive efforts of the West by deepening ties with its allies around the world.

The Iranian leader is currently on a tour of Latin America designed to rekindle ties with like-minded allies.

U.S. warnings to regional leaders not to roll out the red carpet for Ahmadinejad went unheeded by Venezuelan President Hugo Chavez, Nicaraguas President Daniel Ortega and Cuban President Raul Castro.

This week, they overwhelmingly showed solidarity with their "brother", mocked American foreign policy and contested its legitimacy to impose sanctions on Iran.

Such public shows of support are crucial for Tehran, feel experts, and would go a long way in strengthening Iran's standing in fora such as the IAEA and the UN.

"The leader of Iran is visiting these countries because these are, on the one hand, those who would be willing to engage with Iran," Josef Janning, director of studies at the European Policy Center, told Xinhua.

"On the other hand, the influence of these countries are among the most critical vis-a-vis the dominant role of the U.S.," Janning added.

Some are less convinced further sanctions again Iran will achieve their intended goal. While new economic blockades may impact ordinary citizens to a certain degree, Iran's position on its nuclear program is unlikely to change because it still has alternatives to the West.

"I do not see this step as highly effective in changing Iran's position as long as demand from Asia can absorb the exports that would otherwise go to the EU," said Rym Ayadi, senior research fellow at the Brussels-based Centre for European Policy Studies.

For now, Iran continues to sharply divide the UN Security Council. While Israel and U.S. have openly rejected the idea of a nuclear Iran, Europe seems to remain pragmatic, according to Janning.

"The EU doesn't want to answer the question if they would accept a nuclear Iran, they would not like to see that," he told Xinhua.

"But if they would find themselves in a position where the answer comes down to yes, they are trying to seek to contain its implications," Janning added.