Washington, D.C. – The Treasury Department unveiled new sanctions on Iran today in response to the recent aerial attack on Israel, emphasizing a shift towards economic measures over military action by the Biden administration.
Treasury Secretary Janet L. Yellen stated that these sanctions aim to disrupt the Iranian drone program that targeted civilian populations in Israel. In addition to targeting Iranian steel production, these sanctions mark a significant step not seen since 2021, with over 600 Iranian-related entities facing sanctions in the past three years.
Yellen reinforced the administration’s commitment to making it challenging and costly for Iran to engage in destabilizing activities. She further emphasized the continuous deployment of sanctions to counter further actions by Iran in the coming days and weeks.
The administration’s choice to focus on targets within Iran with these sanctions suggests a strategy of avoiding escalation, especially considering the already heavily sanctioned nature of Iran’s economy.
Critics have urged the administration to expand sanctions to include China, a key supporter of Iran through significant oil purchases. However, the Treasury Department’s current actions seem to concentrate on internal Iranian targets rather than risking potential global oil price increases.
Despite the recent tensions between Iran and Israel, including the Iranian drone and missile attacks on Israel over the weekend, causing minimal damage and casualties due to interception by Israeli and other forces, the administration’s approach seems to prioritize targeted measures over broader economic warfare.
The latest round of sanctions includes individuals and companies enabling Iran’s drone production, as well as entities providing materials to Iranian steel production. Sanctions also target subsidiaries of an Iranian automaker accused of supporting the regime, signifying a multifaceted approach to addressing Iran’s actions and support networks.