Tehran effectively closed the key shipping lane for global gas and oil in retaliation to US-Israeli strikes launched in February.

Deeming the blockade "contrary to international law", EU governments took a technical step to extend the scope of its existing Iran sanctions regime allowing for more individuals to be targeted under it.

"The EU will now be able to introduce further restrictive measures in response to Iran's actions undermining the freedom of navigation in the Strait of Hormuz," the European Council representing EU nations said.

Brussels' punitive measures on Iran previously targeted the country's military support for Russia in its war against Ukraine and for armed groups across the Middle East.

The European Union has also imposed sanctions over human rights violations in the country.

The EU did not immediately name any individual or entities that would be targeted by the new sanctions, consisting of travel bans and asset freezes.

EU citizens and companies will also be banned from making funds, financial assets or other economic resources available to those listed.

The Iran war and the closure of Hormuz, which normally carries a fifth of global oil production, have sent ripples across the global economy, sending energy prices soaring.