You’d have to close both the Suez and the Strait of Gibraltar, otherwise you’re just raising the price. Also, embargos are “I won’t trade with you.” They usually don’t involve blockades or closing of sea lanes. An embargo is a passive action, you’re just stopping doing something. An actual halting of neutral merchants passing through your waters is an active measure, you’re taking an action that harms both the target and cuts into the profits of the merchants that would otherwise be making money. It’s a bolder action overall.

But yea, theoretically possible.