European Union Foreign Ministers failed to reach an agreement to impose an embargo on Iranian oil.
But they imposed sanctions on 180 other Iranian people and companies.
At a meeting Thursday in Brussels, some countries argued in favor of the oil embargo, saying it would reduce money used by Iran to develop nuclear weapons. Iran denies it has such a weapons program.
But French Foreign Minister Alain Juppe said Greece, which relies on Iranian oil, objected to such a move.
At the meeting, British Foreign Minister William Hague accused Iran's government of supporting the repression in Syria. The EU also discussed more sanctions against Syria for the continued repression of demonstrators.
On Tuesday, mobs stormed the British Embassy in Tehran, prompting Britain to pull its diplomats out of the country.
Germany, France and the Netherlands have recalled their ambassadors in solidarity.
"There is a link between what is happening in Iran and what is happening in Syria," Hague said.
He said Iran has aided Syrian President Bashar Assad's regime, which the United Nations estimates has killed at least 3,500 anti-government protesters since March.
EU sanctions against Iran are aimed at making the country give up any efforts to develop nuclear weapons.