EU Targets Iran Sanctions Amid Hormuz Tensions

The European Union is set to expand its sanctions against Iran by including individuals and entities responsible for obstructing the Strait of Hormuz. This strategic waterway has been largely closed for nearly two months following a series of U.S.-Israeli military strikes against Iran.

The impacts have been felt across global energy and commodities markets, as the strait is vital for the transport of about 20% of the world's oil and liquefied natural gas. While several tankers briefly navigated Hormuz after Iran declared it open, the situation remains precarious.

According to EU diplomats, a political agreement exists to change the sanction criteria to address obstruction of navigation. The European External Action Service will take several weeks to prepare new listings, as the EU continues to address escalating regional tensions.