European Union ministers expanded sanctions against Iran on May 22, targeting individuals and entities threatening Middle East shipping lanes. The Council of the EU cited Iranian actions in the Strait of Hormuz as a violation of international law.
The Strait of Hormuz serves as a critical chokepoint for approximately 20% of the global oil supply. The new EU measures include asset freezes and travel bans to pressure Tehran amid stalled diplomatic efforts.
US-Iran peace talks remain deadlocked over Iran's uranium stockpile and its demands for control over the Strait. This diplomatic impasse clouds the outlook for normalizing Middle East energy exports.
WTI crude oil futures rose on Friday to trade near $98 per barrel. Investors expect supply disruptions to persist as geopolitical risks in the region intensify.