The European Union (EU) is expected to expand sanctions against Iran by targeting individuals and entities responsible for blocking passage through the Strait of Hormuz. The move comes after the strait has been closed for nearly two months, significantly impacting global energy and commodity markets.
The closure follows a joint US-Israeli attack on Iran that began on February 28.
The move has affected about a fifth of the world’s oil and liquefied natural gas supplies, making global markets more vulnerable to supply disruptions.
Although more than a dozen tankers have begun transiting the Strait of Hormuz after Iran temporarily reopened the route, the situation remains volatile. The ceasefire was again threatened when the US seized an Iranian cargo ship, while maintaining a military blockade on the country’s ports.
EU diplomats said there was political agreement among ambassadors to update the existing sanctions regime. The main focus is to enable the EU to take action against those who obstruct freedom of navigation in the Strait of Hormuz, a critical route for global energy trade.
Meanwhile, the European External Action Service (EEAS) is expected to take several weeks to prepare a new sanctions list. The agency is responsible for blacklisting individuals and companies, while the European Commission handles sanctions at the sectoral level.
The EU has previously taken a tougher stance by designating Iran's Revolutionary Guard Corps as a terrorist organization in January, followed by listing Iranian officials in March for human rights abuses.
