The New York Times reported the sanctions include a ban on new investment in Iran's eroding oil and gas sector, as well as tighter restrictions on transport and finance.
The 27 European ministers who belong to the European Union said in a statement they had agreed on "a comprehensive and robust package of measures in the areas of trade, financial services, energy, transport as well as additional designations for visa ban and asset freeze, in particular for Iranian banks, the Islamic Revolutionary Guard Corps and the Islamic Republic of Iran Shipping Lines," the Times reported.
The move follows sanctions made in recent months by the United Nations Security Council and the U.S. government.
The Times quoted the Iranian government as saying its nuclear program is designed to produce electricity, not weapons.
The country's rulers have also said sanctions will not influence its actions, the newspaper said.
Notable deaths of 2014 [PHOTOS]