The United States and the United Kingdom on Thursday announced a new round of sanctions on Iran after its retaliatory attack on Israel, with President Joe Biden saying G-7 leaders were committed to acting together to ramp up economic pressure on Tehran.
The sanctions were meant to hold Iran accountable for its weekend attack, carried out in retaliation for a presumed Israeli strike on the Iranian Consulate in Damascus which killed two generals and several others on April 1, and to deter further such activity.
But the practical impact is likely to be limited because many of the targeted companies already were subject to U.S. sanctions and the individuals singled out for new sanctions are unlikely to have assets in U.S. jurisdictions.
The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) targeted 16 people and two entities in Iran that produce engines that power the unmanned aerial vehicles used in the April 13 attack on Israel.
OFAC also sanctioned five firms involved in steel production and three subsidiaries of Iranian automaker Bahman Group – which is said to be materially supporting Iran's military and other sanctioned groups.
Additionally, the U.K. is targeting several Iranian military branches and individuals involved in Iran’s drone and ballistic missile industries.
Biden said in a statement that he had directed the U.S. Treasury "to continue to impose sanctions that further degrade Iran’s military industries."
"Let it be clear to all those who enable or support Iran’s attacks,” he said, "we will not hesitate to take all necessary action to hold you accountable.”
U.K. Prime Minister Rishi Sunak said in a statement that the sanctions "will further limit Iran’s ability to destabilize the region."
"Iran's behavior is unacceptable," British Foreign Secretary David Cameron said on the sidelines of a meeting of foreign ministers from the Group of Seven major Western powers in Italy.
"(It) is a message to Israel that we want to play our part in having a coordinated strategy that deals with Iran's aggression," he said.
In addition to Treasury's sanctions, the U.S. Commerce Department is imposing new controls to restrict Iran’s access to basic commercial-grade microelectronics, which apply to items manufactured outside the U.S. that are produced using American technology.
The actions come after U.S. officials earlier this week warned that they were readying new sanctions in response to Iran’s activity in the region and to prevent future attacks. Lawmakers on Capitol Hill also have been quickly pushing forward legislation that would financially punish Iran and its leaders.
Iran’s attack on Israel early Sunday came in response to an Israeli strike on Iran’s Consulate in Syria earlier this month.
Israel’s military chief said Monday that his country will respond to the Iranian missile and drone attack, while world leaders caution against retaliation, trying to avoid a spiral of violence.
A senior Iranian Revolutionary Guards commander said on Thursday Iran could review its "nuclear doctrine" following Israeli threats.
European Union leaders also vowed on Wednesday to ramp up sanctions on Iran, targeting its drone and missile deliveries to proxies in Gaza, Yemen and Lebanon.
EU foreign policy chief Josep Borrell said the existing EU sanctions regime would be strengthened and expanded to punish Tehran and help prevent future attacks on Israel. But, he said, Israel needed to exercise restraint.
"I don’t want to exaggerate, but we are on the edge of a war, a regional war in the Middle East, which will be sending shockwaves to the rest of the world, and in particular to Europe,” he warned. "So stop it.”
The U.S. has already sanctioned hundreds of entities and people in Iran – from the central bank and government officials to drone producers and money exchangers – said to be materially supporting Iran's Revolutionary Guard and groups such as Hamas, Hezbollah and the Houthis.
And U.S. efforts to limit Iran's income from oil and petroleum products span back decades.
The question remains how effective sanctions will be, and have been, in preventing Iran from ramping up its production of military equipment. American defense officials say Iran is supplying drones to Russia as it pursues its invasion of Ukraine, which has reached a third year.
Earlier this week, Treasury Secretary Janet Yellen said during a press conference that the U.S. has "been working to diminish Iran’s ability to export oil."
”There may be more that we could do," she said.
