Biden admin unveils new sanctions on Iran for “unprecedented” attack on Israel

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.