EU to Sanction Persons Responsible for Hormuz Blockade

The European Union has moved to expand its sanctions framework against Iran to include those responsible for the ongoing blockade of the Strait of Hormuz. The strategic waterway has been largely obstructed for nearly two months, a situation that has significantly impacted global markets for Brent Crude Oil, West Texas Oil, and Natural Gas. Tehran effectively shuttered the strait following the commencement of military strikes by the United States and Israel on February 28. This closure has disrupted approximately one-fifth of the global supply of oil and liquefied natural gas. While a brief reopening on Friday allowed more than a dozen tankers to pass, a subsequent seizure of an Iranian cargo ship by American forces has threatened the stability of the region. EU ambassadors have reached a political agreement to adjust the criteria for Iranian sanctions, enabling the listing of individuals and entities that obstruct freedom of navigation. > There was a political agreement among ambassadors that we indeed would change the criteria in Irans 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. The European External Action Service (EEAS) will require several weeks to identify and prepare the new listings. While the EEAS manages the designation of specific individuals and companies, the European Commission oversees broader sector-wide restrictions. This latest move follows the EU's designation of the Iranian Revolutionary Guards as a terrorist organization in January and the imposition of human rights sanctions in March.