Dec. 8 (Bloomberg) -- Iran, the second-biggest producer of crude oil in the Middle East, has ``completely halted'' all oil transactions in dollars, the state-run ISNA news agency said, citing Oil Minister Gholamhossein Nozari.

Nozari said the U.S. currency was no longer reliable as the dollar continues to depreciate. The Organization of Petroleum Exporting Countries has set up a team to study pricing oil in another currency, the INSA cited Nozari as saying. The measure is designed to prevent further losses in revenue to oil exporters, ISNA reported.

The group's findings will be announced at the next OPEC meeting, Nozari said, according to ISNA.

Iran has reduced its dependence on the dollar this year as the U.S. and Europe have encouraged tougher sanctions over the country's atomic program. Iran says it aims to develop atomic energy for domestic power; the U.S. accuses the Islamic Republic of trying to build nuclear weapons.

To contact the reporter on this story: Robin Stringer in London at rstringer@bloomberg.net.

Last Updated: December 8, 2007 06:50 EST