The European Union will broaden its Iran sanctions regime to target those judged responsible for blocking transit through the Strait of Hormuz, two EU diplomats said, after the waterway was effectively shut for nearly two months and has severely disrupted global energy and commodities markets.
Officials say Tehran moved to close the strait following U.S.-Israeli strikes on Iran that began on February 28. That action cut off an estimated one-fifth of the world’s oil and liquefied natural gas supplies, figures cited by EU diplomats in discussions over the sanctions change.
In recent days more than a dozen tankers transited the strait after Iran briefly declared it open on Friday. However, the fragile ceasefire was threatened when the United States seized an Iranian cargo ship while maintaining its own military blockade of Iranian ports, an action diplomats said put the agreement in jeopardy.
One diplomatic source described a political accord among EU ambassadors to amend the criteria used in Iran’s sanctions framework so that people and organisations deemed responsible for obstructing freedom of navigation in the Strait of Hormuz can be listed. The diplomat said:
"There was a political agreement among ambassadors that we indeed would change the criteria in Iran’s sanctions regime so that we could also list persons and entities that are responsible for the obstruction of the freedom of navigation in the Strait of Hormuz."
A second diplomatic source noted that the European External Action Service - the EU body responsible for placing individuals and companies under restrictive measures - will require a few weeks to prepare any new listings. The European Commission, by contrast, handles sector-wide restrictions within the EU sanctions architecture.
The move follows earlier EU decisions this year to widen pressure on Tehran. In January the EU designated Iran’s Islamic Revolutionary Guard Corps as a terrorist organisation and in March it added specific Iranian officials to sanctions lists for human rights violations.
As the EU updates the criteria for listings, officials face logistical timing and procedural steps before any new sanctions can be imposed. The EEAS preparation timeline and the recent maritime incidents underline both the diplomatic and operational challenges of enforcing expanded restrictions while navigation through the Hormuz corridor remains unsettled.