During a meeting with Costa Rican Vice President Dr. Alfio Piva in Jerusalem on Tuesday, Foreign Minister Avigdor Lieberman said that there were increasing signs that Venezuela, headed by President Hugo Chavez, is involved in funding Iran's nuclear program and some of its military projects.

"This is not being done without receiving something in return. Apparently, the Iranians have promised Venezuela that they will share their developments with the South American country," Lieberman said.

On Friday, Chavez criticized international sanctions imposed on Iran as he met with Iranian President Mahmoud Ahmadinejad. Chavez said Iran faces "obstacles imposed by imperialism, blockades, threats and unilateral sanctions."

Chavez has previously defended Iran's controversial nuclear program, saying he believes the Iranian government is simply pursuing peaceful energy means. The Venezuelan leader said that Iran can count on "all the support of the Venezuelan people, of the Venezuelan government." He didn't say what that support entails.

The two leaders pledged to keep building closer ties, though they didn't mention specific initiatives. Both leaders are staunch critics of the U.S. government and said during the meeting in Caracas that they hope to work together to counter "imperialism."

Chavez also reiterated that Venezuela has begun producing surveillance drones equipped with small cameras, and said the military project shouldn't cause anyone concern. "They create a scandal here, the Venezuelan Right and the United States, the spokespeople of the empire," Chavez said. "It's to increase our security capability."

Chavez didn't say whether Iran has a role in the production of the drones.

Meanwhile, sanctions imposed by the West on Iran continue to affect the country's food industry. According to reports, Iranian consumers held a spontaneous three-day anti-government boycott of bread and dairy products in light of spiking prices of food staples throughout the country.

The boycott was reportedly not organized by an Iranian opposition organization, while some bakeries and supermarkets in Tehran reported up to a 90 percent reduction in sales.

Sanctions on Iran will reach a peak on July 1 when an EU embargo on Iranian crude oil is set to take affect. In addition to the EU's plan to end imports of oil from the Islamic republic, South Korea announced on Tuesday that it too will halt oil imports from Iran starting next month due to an EU ban on insuring shipments of Iranian crude.

The insurance ban, which is part of broader EU sanctions aimed at cutting the sources of finance for Iran's nuclear program, makes it impossible for South Korean companies to ship Iranian crude as they rely on EU companies to insure the shipments.

The sanctions affect two South Korean oil refiners, SK Energy and Hyundai Oil Bank. South Korea's two other refiners don't import Iranian crude.

South Korea's government was in talks with the EU to extend exemptions for it, because it imported about nine percent of its oil from Iran in 2011. On Monday, the European Union Council said exemptions from Iran-related sanctions will cease on July 1 as scheduled.

"The EU will stop Iranian crude oil imports from July 1 and will stop offering insurance and reinsurance on Iranian oil imports. Therefore South Korea's Iranian crude imports will be suspended," said a joint statement released by the ministries of commerce, foreign affairs and finance. "The government will continue efforts to minimize the effects on domestic industry and the economy and it will continue negotiations," it said.

The government said it has been in talks with other oil exporting countries, such as Kuwait, United Arab Emirates, Iraq and Qatar, to find alternative sources.

South Korea was one of the seven countries that avoided U.S. economic sanctions after it reduced Iranian oil imports. In May, its crude imports from Iran dropped some 40% from the previous month.

In 2011, South Korea imported 87 million barrels of crude oil from Iran, up 20% from the previous year.