According to the paper, citing European diplomats meeting in Stockholm, a decision could be taken as soon as next week as to whether to slap a travel ban on Iranian officials but it will depend on the situation on the ground.
The Swedish EU presidency has warned that the EU is "ready to take action" if Iran does not free British embassy staff still detained in Tehran.
Another idea being circulated is to recall ambassadors for a few days as a sign of protest, according to one European source.
While many EU nations are reluctant to pull their ambassadors out of Tehran, they hope diplomatic pressure will secure the release of all British embassy employees.
