U.S. Treasury prepares sanctions against Iran in response to attacks on Israel

The U.S. has vowed not to hesitate in imposing economic punishment in response to the Islamic Republic's unprecedented attack on Israel.

President Biden, meanwhile, has urged Israeli Prime Minister Benjamin Netanyahu to exercise military restraint. Despite this, the administration is showing a willingness to retaliate against Iran in the economic sphere. This sends a subtle message to Israel that there are multiple ways to harm the ruling regime in Tehran.

Yellen is set to press fellow finance ministers, who are visiting D.C. for the annual spring IMF meetings this week, to focus their governments on possible sanctions work with the U.S. on coordinated actions.

"Treasury will not hesitate to work with our allies to use our sanctions authority to continue disrupting the Iranian regime's malign and destabilizing activity," Yellen said during her opening remarks at a press conference on Tuesday.

She will further emphasize the importance of Treasury's work to use economic tools to counter Iran's activity, underscoring the significance of the recent attack by Iran. (ILKHA)