Home News and Resources News News 01 Jun, 2026 EU Expands Iran Sanctions Framework to Target Threats to Freedom of Navigation Tony Paulson Head of Asia & Corporate Director On 22 May 2026, the Council of the European Union adopted a decision amending its existing Iran sanctions framework to allow the EU to target individuals and entities involved in Iran's actions threatening freedom of navigation in particular in the Strait of Hormuz. Download PDF Background and context The Strait of Hormuz has been largely closed to commercial shipping since 28 February 2026, when Iran moved against vessels transiting the waterway in response to US and Israeli air strikes on Iranian targets. The Strait carries approximately a fifth of global oil and LNG supplies, and its disruption has had a significant impact on energy and commodity markets. Since the closure, Iran's Islamic Revolutionary Guard Corps (IRGC) has issued warnings forbidding passage. The IRGC was itself designated a terrorist organisation by the EU on 19 February 2026, bringing it within the scope of the EU's counterterrorism sanctions regime. In March 2026 the European Council had called for the full implementation of UNSC Resolution 2817 (2026) , stressing the need to ensure maritime security and respect freedom of navigation, and condemning any acts threatening vessel traffic or obstructing vessels' entry into and exit from the Strait of Hormuz. Nature of the amendment The EU has not issued a new standalone sanctions regime. Rather, it has expanded the scope of the existing framework established in July 2023 (which originally addressed Iran's military support to Russia) and subsequently broadened in May 2024 (to cover support to armed groups in the Middle East and Red Sea region). The amended framework now enables the EU to introduce further restrictive measures in response to Iran's actions undermining freedom of navigation in the Strait of Hormuz. Scope of available measures The restrictive measures availabl