EU Implements New Sanctions Against Iran and Deliberates on Designating IRGC as a Terrorist Organization

On January 29, 2026, the European Union formally ratified a comprehensive suite of restrictive measures targeting various Iranian officials and organizations. This decisive move comes as a direct response to the intensifying domestic violence within Iran. In a landmark shift, the EU Council of Foreign Ministers also reached a consensus to designate the Islamic Revolutionary Guard Corps (IRGC), Iran's primary military and political powerhouse, as a terrorist organization.

High Representative for Foreign Affairs and Security Policy, Kaja Kallas, underscored the necessity of these measures through a statement on the social media platform X. Kallas asserted that state-sponsored repression cannot be ignored, remarking that any regime responsible for the deaths of thousands of its own citizens is effectively accelerating its own downfall. Despite the severity of the new sanctions, Kallas emphasized that the European Union intends to keep diplomatic channels with Tehran open, even as the risk of a total breakdown in communication grows.

The newly implemented sanctions package includes the freezing of assets and a total ban on the provision of financial resources to approximately 30 Iranian individuals and legal entities. Furthermore, these parties are now subject to strict visa restrictions. European authorities have identified these targets as being directly involved in the violent suppression of anti-government demonstrations that erupted across the country in late December 2025.

Support for the terrorist designation of the IRGC has gained significant momentum across the continent. France, under the leadership of Jean-Noël Barrot, has joined Spain and Italy in endorsing this status. This classification is expected to trigger rigorous criminal prosecution for any form of assistance provided to the group, alongside a comprehensive entry ban for its members. This unified front represents a significant hardening of the European stance toward the Iranian leadership.

The current wave of unrest is deeply rooted in Iran's deteriorating economic landscape. The volatility began on December 28, 2025, at the Tehran Grand Bazaar, sparked by a dramatic collapse of the national currency. Over the past year, the US dollar has appreciated by roughly 80% against the Iranian rial, while official inflation has surged past the 40% mark. This economic instability has translated into a staggering 70% to 110% increase in the cost of essential food items, pushing the populace to a breaking point.

Assessing the true scale of the government's crackdown remains challenging due to a strict information blockade and internet censorship enforced since January 8, 2026. However, the human rights organization HRANA reported that by mid-January 2026, the death toll had reached 3,919, with approximately 24,700 individuals detained. Other reports offer even more harrowing figures; British magazine Time, citing sources within the Iranian Ministry of Health, suggested that casualties could be in the thousands, with some estimates reaching 30,000 to 36,500 deaths during the peak violence of January 8 and 9, 2026. Conversely, the Iranian government acknowledged 3,117 fatalities as of January 21.

Beyond individual sanctions, the European Union has expanded its list of prohibited exports to Iran. The focus of these trade restrictions is primarily on advanced technologies associated with the production of missiles and unmanned aerial vehicles (UAVs). This strategic move aims to curtail the regime's military capabilities and its ability to project power both domestically and regionally.

These diplomatic and economic maneuvers are occurring against a backdrop of rising tensions throughout the Middle East. United States President Donald Trump has signaled that the window for a new deal with Iran is rapidly closing. In a show of military deterrence, the U.S. has deployed the USS Abraham Lincoln carrier strike group to the region. Meanwhile, German Foreign Minister Johann Wadephül has characterized the Tehran government as an Unrechtsregime, or a regime of injustice. In response to the mounting international pressure, Tehran has issued warnings of devastating consequences for those involved in the escalation.