How the Iran war is reshaping the EU’s strategy on Russian oil sanctions in Oil & Companies News 03/06/2026 The European Union is considering freezing its $44.10-per-barrel price cap on Russian oil as the Middle East conflict and disruptions in the Strait of Hormuz drive crude prices sharply higher. As tensions in the Middle East continue to escalate and concerns over global energy supplies mount, the European Union is considering a temporary freeze on its price cap for Russian oil, according to people familiar with the matter cited by Bloomberg. The move comes amid a sharp rise in crude oil prices triggered by the Iran war and disruptions to shipping through the Strait of Hormuz, a key global energy transit route. The EU currently maintains a dynamic pricing mechanism under which the cap on Russian Urals crude is automatically reviewed every six months and set at 15% below the average market price. The current threshold stands at $44.10 per barrel and is due for review later this summer. Oil prices have surged due to the conflict and the effective closure of the Strait of Hormuz. Under the existing formula, the next review in July could push the cap to at least $65 per barrel, above the previous G7-agreed threshold of $60, the people said. What is the EU price cap on Russian oil? The European Union, in coordination with the G7, currently enforces a price cap of $44.10 per barrel on seaborne Russian crude oil. The mechanism, which came into effect on February 1, 2026, limits the price at which Russian oil can be sold using European shipping, insurance and other maritime services. The measure was introduced to curb Russia’s energy revenues and reduce its ability to finance its war in Ukraine while allowing oil supplies to continue flowing to global markets. Why is the EU considering a freeze? The proposal under discussion would keep the price cap at the current level instead of allowing it to rise automatically under the review mechanism. Officials are also consi