The Biden administration on Thursday imposed new sanctions on Iran's drone, steel and auto industries, the Treasury Department announced.
The big picture: The Biden administration wants to punish Iran for its unprecedented missile and drone attack against Israel without escalating the situation militarily.
- The sanctions were coordinated with the United Kingdom, which is also targeting Iran's drone program, as well as its ballistic missile program, the Treasury Department said in a release.
What they are saying: "In consultation with partners and allies, we are taking swift and decisive action to respond to Iran's unprecedented attack on Israel," Treasury Secretary Janet Yellen said in the release.
- "We're using Treasury's economic tools to degrade and disrupt key aspects of Iran's malign activity, including its UAV program and the revenue the regime generates to support its terrorism," Yellen said.
- Yellen previewed the sanctions earlier this week, Axios first reported Tuesday.
In a statement, President Biden said the U.S. is "committed to acting collectively to increase economic pressure on Iran."
- "I've directed my team, including the Department of the Treasury, to continue to impose sanctions that further degrade Iran's military industries," Biden stated.
- He added that "our allies and partners have or will issue additional sanctions and measures to restrict Iran's destabilizing military programs."
Driving the news: The sanctions announced Thursday will target 16 individuals and two entities involved in Iran's drone production.
- Five companies that provide materials for "Iran's Khuzestan Steel Company (KSC)," will also be listed, according to the release.
- In addition, three subsidiaries of the Bahman Group, an Iranian automaker, will also be sanctioned
Zoom out: Israel considered conducting a retaliatory strike against Iran on Monday but decided to hold off, Axios' Barak Ravid reported.
- The U.S. is concerned that continued counterattacks could trigger wider regional escalation.
Between the lines: Biden has urged Israeli Prime Minister Benjamin Netanyahu to exercise military restraint.
Editor's note: This story was updated with a statement from President Biden.
