Finance
EU to Widen Iran Sanctions to Those Who Block Hormuz
Published by Global Banking & Finance Review®
Posted on April 20, 2026
2 min readLast updated: April 20, 2026
Add as preferred source on GoogleQuick Summary
The EU plans to broaden its Iran sanctions to target individuals and entities obstructing maritime navigation through the Strait of Hormuz—a vital chokepoint responsible for about one‑fifth of global oil and LNG traffic. The move comes amid nearly two months of effective closure, radically disruptin
EU to Expand Iran Sanctions Over Hormuz Blockade, Impacting Global Markets
EU Sanctions Expansion and Its Global Implications
By Julia Payne and John Irish
Background: Strait of Hormuz Blockade and Market Disruption
BRUSSELS/PARIS, April 20 (Reuters) - The European Union will expand the criteria of its Iran sanctions to include those responsible for blocking the Strait of Hormuz, which has been largely shut for nearly two months upending global energy and commodities markets, two EU diplomats said.
Tehran’s Actions and Global Energy Supply
Tehran effectively closed the strait after U.S.-Israeli strikes on Iran began on February 28, cutting off roughly one-fifth of the world's oil and liquefied natural gas supplies.
Recent Developments in the Strait of Hormuz
More than a dozen tankers sailed through Hormuz after Iran briefly declared it open on Friday, but the ceasefire agreement was thrown into jeopardy after the United States seized an Iranian cargo ship as it maintained its own military blockade of Iranian ports.
EU’s Political Response and Sanctions Process
New Criteria for Sanctions
"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," one of the diplomats said.
Implementation Timeline and Responsible Bodies
A second diplomatic source said the European External Action Service would need a few weeks to prepare any new listings. The EEAS is in charge of placing people and companies under sanctions while the European Commission handles sector-wide restrictions.
Previous EU Actions Against Iran
In January, the EU designated Iran's Revolutionary Guards (IRGC) as a terrorist organisation and in March it listed Iranian officials for human rights violations.
(Reporting by Julia Payne in Brussels and John Irish in Paris; Editing by Kirsten Donovan)
Key Takeaways
- •The expanded sanctions will include those blocking freedom of navigation in the Strait of Hormuz, pending new listings in the coming weeks.
- •The near‑two‑month effective closure has disrupted roughly 20% of global oil and LNG supplies, triggering historic energy market instability.
- •Markets have reacted sharply: Brent crude spiked above $100–$115 per barrel; global trade and food prices face mounting pressures due to energy and fertilizer bottlenecks.
Frequently Asked Questions about EU to widen Iran sanctions to those who block Hormuz
1Why is the EU expanding Iran sanctions?
The EU is expanding sanctions to include those responsible for blocking the Strait of Hormuz, disrupting global energy and commodities markets.
2What triggered the closure of the Strait of Hormuz?
Tehran closed the strait following U.S.-Israeli strikes on Iran, cutting off significant oil and LNG supplies.
3How long has the Strait of Hormuz been largely shut?
The Strait of Hormuz has been largely shut for nearly two months.
4Who decides on new EU sanctions listings?
The European External Action Service is responsible for preparing and placing people and companies under EU sanctions.
5What has been the impact of the Hormuz blockade on global markets?
The blockade has upended global energy and commodities markets by cutting off about one-fifth of the world's oil and LNG supplies.
