FINWIRES · TerminalLIVE
FINWIRES

EU Expands Iran Sanctions Framework Over Strait of Hormuz Disruptions

By

The European Union expanded its Iran sanctions framework to target actions threatening navigation through the Strait of Hormuz, the Council of the European Union said Friday.

The Council widened the scope of existing restrictive measures that previously focused on Tehran's military support for Russia and armed groups in the Middle East and Red Sea region.

The revised sanctions framework will target individuals and entities linked to Iranian actions and policies that threaten navigation routes across the Middle East.

European Union foreign ministers reached a political agreement during the Foreign Affairs Council meeting on April 21, the Council said.

The Council said that Iranian actions targeting vessels passing through the Strait of Hormuz violate international law and interfere with established rights of transit and innocent passage through international waterways.

The updated framework allows the European Union to impose additional sanctions in response to Iran's actions disrupting navigation through the Strait of Hormuz, the Council said.

The measures include travel bans and asset freezes on listed individuals and entities, and prohibit European Union citizens and companies from providing funds or other economic resources to sanctioned parties.

Related Articles

Oil & Energy

Market Chatter: Asia-Europe Jet Fuel Trade Reopens as France Awaits 745,000-Barrel Shipment

Europe is receiving its first jet fuel shipment from Northeast Asia since the Iran conflict disrupted trade routes in February, Reuters reported Friday, citing shiptracking data and three trade sources.South Korea loaded around 745,000 barrels of jet fuel at Yeosu onto Vitol-chartered tanker Seriana between May 1 and May 6, the report said, citing Kpler, LSEG and a fourth source.The Seriana transferred the jet fuel cargo near the Strait of Malacca to the Yuan Lan Wan between May 18 and May 21, with the shipment now heading to France, according to shipping data and trade sources.After US-Israeli airstrikes targeted Iran on Feb. 28, disruptions around the Strait of Hormuz forced Asian refiners to cut refinery operations, shipping data showed.Asian refiners also focused on meeting regional fuel demand first as uncertainty around Middle East shipping routes continued to disrupt exports westward.Last year, Asia shipped an average of 1.5 million barrels of jet fuel to Europe each month because the region often balances European supply shortages, according to Kpler.Limited arbitrage opportunities continue to restrict Asian jet fuel cargo movements into Europe, the report added, citing James Noel-Beswick, analyst at Sparta Commodities.Industry sources estimated shipping costs from Singapore to northwest Europe at about $40 per metric ton, while recent regional price spreads stayed near $20 to $30 per mt, two industry sources said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Oil & Energy

Market Chatter: France Considers Imposing Windfall Tax Amid Energy Price Surge

The French government may impose a windfall tax on companies that benefited from the surge in energy prices brought about by the US-Iran war, Reuters reported Friday, citing Finance Minister Roland Lescure.The minister reportedly told a local radio station that companies that have made "exceptional" amounts may have to pay additional taxes, and that a debate on the matter will take place in the fall.If implemented, windfall taxes may primarily affect energy firms, such as TotalEnergies (TTE).TotalEnergies CEO, Patrick Pouyanne, warned last month that any tax surcharge by the government would lead to the company ending fuel price caps it has in place at retail outlets.The French oil supermajor has faced criticism after it reported a 51% year-over-year jump in its Q1 net income, local news agency RFI reported last week, strengthening the case for additional taxes advocated by several politicians.A number of environmental organizations and social justice coalitions have also urged the government to impose a permanent windfall tax on fossil fuel profits, according to environmental campaigner '350'. It cited TotalEnergies' "indecent" Q1 profits that have cost consumers billions of euros.TotalEnergies' Pouyanne will reportedly face the National Assembly finance committee on June 17 to answer questions.has reached out to the energy company to seek comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $90.96, Change: $-1.45, Percent Change: -1.57%

$TTE
Oil & Energy

US Oil Update: Crude Gains Amid Shifting Iran Peace Hopes

Crude prices were headed for a weekly loss despite gains on Friday, as brief optimism for a Middle East breakthrough collapsed under rigid nuclear disputes between US and Iran.Front-month West Texas Intermediate crude futures edged up by 0.1% to $96.47 per barrel, while Brent futures were up by 0.7% to $103.34/bbl.However, both benchmarks were down for the week with Brent falling over 6% on a weekly basis so far while WTI dropped more than 8% so far this week.Saxo Bank analysts noted that early hopes were supported by rhetoric out of Tehran indicating a fresh proposal from Washington had successfully narrowed historical differences pressuring prices earlier in the week.However, the market quickly retraced those losses following aggressive counter-statements from Iran's Supreme Leader regarding the sovereignty of Tehran's nuclear assets, effectively clouding the near-term prospects for a comprehensive peace accord.Compounding this nuclear gridlock is a highly controversial Iranian counter-proposal to implement a formal state-run tolling and transit fee system for commercial vessels navigating through the strategic Strait of Hormuz.Speaking at an Environmental Protection Agency event at the White House on Thursday, US president Donald Trump rejected any permanent maritime taxing framework, reinforcing that the US views the chokepoint as an absolute free international waterway.Experts warn that any formal tolling mechanism would set a highly destabilizing global precedent, threatening the free flow of maritime commerce across all international chokepoints."Should the blockade of the Strait of Hormuz continue for even longer-and that seems likely-stocks will continue to deplete," Commerzbank analysts said.