EU Expands Iran Sanctions over Hormuz

The European Union is set to widen its sanctions on Iran to include individuals and entities linked to the closure of the Strait of Hormuz, according to EU diplomats, as the vital waterway remains largely shut for nearly two months, disrupting global energy and commodity markets.

Since the start of the conflict on 28 February, Tehran has effectively restricted passage through the strait in response to US and Israeli strikes, cutting off close to 20% of global oil and liquefied natural gas supplies.

Traffic briefly resumed last Friday after Iran announced a temporary reopening, allowing more than 10 tankers to pass. However, the situation quickly deteriorated after the US detained an Iranian cargo vessel while continuing its naval blockade on Iranian ports, putting a fragile ceasefire at risk.

EU diplomats said there is political agreement among member states to adjust the sanctions framework so it can target those responsible for disrupting freedom of navigation in the strait. New listings are expected to take several weeks to prepare through the European External Action Service, which handles sanctions on individuals and companies, while the European Commission oversees sector-level restrictions.

The EU had already designated the Islamic Revolutionary Guard Corps as a terrorist organization in January and imposed sanctions on 16 individuals and three entities in March over alleged human rights violations.

Tensions have been rising amid ongoing economic pressure inside Iran, including protests that spread across multiple cities in late December 2025 following a sharp decline in the value of the Iranian rial.

Donald Trump has indicated he is unlikely to extend the current truce with Iran, which is due to expire on Wednesday, unless an agreement is reached. Reports suggest US and Iranian delegations are expected to meet in Islamabad on Tuesday for a second round of negotiations.

Commercial shipping through the Strait of Hormuz was again largely halted on Monday after a brief and unstable reopening over the weekend, highlighting the difficulty of restoring normal traffic through the critical corridor.

Transit levels have remained significantly reduced over the past seven weeks as Iran tightened control over maritime movement in response to military strikes.

Although the temporary reopening initially led to a drop in oil prices and a surge in vessel traffic, the situation quickly reversed as tensions escalated again.