GBAF Logo
Global Banking & Finance Awards® 2026 Nominations open, free to enter Nominate now →
EU sanctions Iranians over restricting naval traffic in Hormuz - Finance news and analysis from Global Banking & Finance Review
Finance

EU sanctions Iranians over restricting naval traffic in Hormuz

Published by Global Banking & Finance Review

Posted on June 8, 2026

2 min read

· Last updated: June 8, 2026

Add as preferred source on Google

EU sanctions Iranians over restricting naval traffic in Hormuz

EU Imposes Sanctions for Maritime Restrictions in the Strait of Hormuz

Background and Context

NICOSIA, June 8 (Reuters) - The European Union said on Monday it had imposed sanctions on two Iranian individuals and a unit of the Islamic Revolutionary Guard Corps for threatening the freedom of maritime traffic in the Strait of Hormuz, through which around a fifth of the world's oil flows.

The move marked the first time the bloc has used new powers to sanction Iran for restricting freedom of navigation.

Details of the Sanctions

The EU said in a written statement that it had added the Hormozgan Provincial Command of the Islamic Revolutionary Guard Corps (IRGC) Navy to its sanctions list, as well as Mohammad Akbarzadeh and Hamid Hosseini.

Individuals and Entities Targeted

It said Akbarzadeh is Deputy Commander for Political Affairs of the IRGC Navy and Hosseini is a representative of Iran’s Oil, Gas and Petrochemical Products Exporters’ Union.

Iran's Response

Commenting on the decision, Iran's Deputy Foreign Minister Kazem Gharibabadi said Tehran does not attach any value to the EU's "political and hypocritical" move.

He said that Iran would continue its strategy to maintain sovereignty over the strategic strait.

Recent Developments in the Strait of Hormuz

 Iran moved to close the Strait of Hormuz after U.S.-Israeli strikes on Iran began on February 28.

EU's Official Statement

"Iran's actions are unacceptable. In response, member states have approved sanctions against Iranian entities and individuals involved in disrupting transit through the Strait of Hormuz," Kaja Kallas, the EU's foreign policy chief, said earlier at a news conference in Cyprus.

"This is the first time the EU has applied its new freedom of navigation regime and when necessary we will apply it again," added Kallas.

Reporting and Editorial Credits

(Reporting by Michele Kambas, Bart Meijer, Sudip Kar-Gupta and Julia Payne and Menna Alaa El-Din and Elwely Elwelly; Editing by Andrew Gray)

Key Takeaways

  • The EU invoked newly expanded sanctions powers—approved May 22, 2026—to target Iran for obstructing lawful maritime transit through the Strait of Hormuz, applying travel bans and asset freezes to listed parties (consilium.europa.eu).
  • This marks the first deployment of the EU’s ‘freedom of navigation regime’ following political approval on April 21 and legal adoption on May 22 (efe.com).
  • Iran’s maritime restrictions—initiated on February 28 in response to U.S.-Israeli airstrikes—have severely hindered transit through the Hormuz chokepoint, which handles about 20% of global oil flows (brusselssignal.eu).

References

Frequently Asked Questions

Why did the EU sanction Iranian individuals and an IRGC unit?
The EU imposed sanctions for threatening the freedom of maritime traffic in the Strait of Hormuz.
Who has been added to the EU's sanctions list?
Two Iranian individuals, Mohammad Akbarzadeh and Hamid Hosseini, and the IRGC Navy's Hormozgan Provincial Command were sanctioned.
What is the significance of the Strait of Hormuz?
The Strait of Hormuz is critical for global oil flows, with about a fifth of the world’s oil passing through it.
What triggered Iran to restrict navigation in the Strait of Hormuz?
Iran moved to close the strait after U.S.-Israeli strikes on Iran began on February 28.
Is this the first time the EU used its new navigation sanctions regime?
Yes, this is the first application of the EU’s new freedom of navigation sanctions powers against Iran.

Tags

Related Articles

More from Finance

Explore more articles in the Finance category