The United States and the United Kingdom imposed fresh sanctions on Iran on Thursday as worries about Tehran’s unprecedented strike on Israel sparking a larger Middle East conflict intensify.
The purpose of the penalties was to indict Iran for its strike over the weekend and to prevent similar actions in the future. The individuals singled out for further sanctions are unlikely to have assets in U.S. jurisdictions, and many of the targeted companies were already under U.S. sanctions, so the practical impact is expected to be limited.
The Iranian manufacturers of the engines used in the drone attacks on Israel on April 13—16 individuals and two companies—were singled out by the Treasury’s Office of Foreign Assets Control.
Additionally, three subsidiaries of the Iranian automobile Bahman Group and five steel-producing companies were sanctioned by OFAC for allegedly providing material support to the Iranian military and other sanctioned organisations. It was not immediately possible to reach a Bahman official for comment.
The United Kingdom is also pursuing a number of Iranian military units and persons connected to Iran’s ballistic missile and drone sectors.
The U.S. Treasury has been instructed by President Joe Biden “to continue to impose sanctions that further degrade Iran’s military industries,” according to a statement he made. He declared, “Let everyone who aids or abets in Iran’s attacks know that we will not think twice about taking all necessary measures to hold you accountable.”
According to a statement by the prime minister of the United Kingdom, Rishi Sunak, the sanctions “will further limit Iran’s ability to destabilise the region.”
The U.S. Commerce Department is enforcing further restrictions to limit Iran’s access to basic commercial grade microelectronics in addition to the Treasury’s sanctions. These restrictions apply to goods made abroad that use technology developed in the United States.
The measures are in reaction to warnings issued earlier this week by US officials that further penalties were being prepared in response to Iran’s actions in the area and to deter further strikes. Additionally, lawmakers on Capitol Hill have been moving swiftly to introduce legislation that would penalise the Islamic Republic of Iran and its officials monetarily.
In reaction to what it claims was an Israeli strike on Iran’s consulate in Syria earlier this month, Iran launched an attack on Israel early on Sunday. According to Israel’s military chief, Israel would retaliate to the Iranian attack on Monday, but world leaders are advising against retaliation in an effort to prevent a violent spiral.
Leaders of the European Union also promised on Wednesday to tighten sanctions against Iran, focusing on the country’s supply of drones and missiles to proxies in Gaza.
The current EU sanctions framework will be reinforced and broadened, according to EU foreign policy leader Josep Borrell, in order to penalise Tehran and deter future attacks on Israel. Israel, he added, has to be restrained at the same time.
“We are on the verge of a war, a regional conflict in the Middle East that will send shockwaves to the rest of the world, and in particular to Europe,” he said, without wanting to exaggerate. “Therefore, cease it.”
Hundreds of Iranian organisations and individuals, including the central bank, government officials, drone manufacturers, and money exchangers, have already been sanctioned by the United States on suspicion of materially assisting the Iranian Revolutionary Guard and overseas extremist organisations including Hamas, Hezbollah, and the Houthis.
Furthermore, American attempts to restrict Iran’s earnings from oil and petroleum products date back many years.
The effectiveness of the sanctions in stopping Iran from increasing its manufacturing of military hardware is still up for debate. Russian military authorities accuse Iran of providing drones to their country while it continues its three-year-long invasion of Ukraine.
During a news conference earlier this week, Treasury Secretary Janet Yellen stated that the United States has “been working to diminish Iran’s ability to export oil.”
“We might be able to do more,” she remarked.”