The US is expanding sanctions against Iran’s oil sector after the Israeli missile attack

The United States on Friday expanded sanctions against Iran’s oil and gas industry in response to a rocket attack on Israel earlier this month.

The new measures target individuals and organizations linked to Iran’s petroleum and petrochemical sectors, increasing economic pressure on Tehran amid rising tensions in the Middle East.

In response to a ballistic missile attack on Israel, the US expanded sanctions on Iran’s oil and gas sector to increase economic pressure on Tehran.

The US Treasury Department announced the new measures on Friday, which are aimed at blocking Iran’s access to funds used to finance its military activities – particularly its ballistic missile program and support for proxy militias.

Sanctions against Iran’s oil trade and shipping

The U.S. Treasury Department cited a 2018 executive order to impose sanctions on those involved in Iranian energy trading.

The new sanctions affect 17 ships and 10 companies linked to the transport of Iranian oil, including tankers that have delivered oil to China. U.S. national security adviser Jake Sullivan said these measures would allow the U.S. to “target Iran’s energy trade more effectively.”

“In response to Iran’s attack on Israel, the United States is taking decisive action to further undermine the Iranian regime’s ability to finance and carry out its destabilizing activities,” said Treasury Secretary Janet L. Yellen.

Today’s sanctions target Iran’s efforts to use revenue from its energy industry to finance deadly and destructive activities – including the development of its nuclear program, the proliferation of ballistic missiles and unmanned aerial vehicles, and support for regional terrorist proxies – with dangerous consequences for the region and the world. We will not hesitate to take further action to hold Iran accountable.

Treasury Secretary Janet L. Yellen

Concerns about Israeli retaliation

The sanctions come amid speculation that Israel may launch retaliatory strikes against Iran following the Oct. 1 rocket fire. US officials have called on Israel to avoid attacks on Iran’s energy infrastructure to prevent broader escalation and global economic disruption. The Israeli security cabinet has yet to decide on its next steps.

Iran’s further missile development

Despite years of sanctions, Iran has continued to develop its ballistic missile program and finance proxy groups such as Hamas and Hezbollah, which the US and EU designate as terrorist organizations.

The latest sanctions are reportedly part of ongoing U.S. efforts to choke off Iran’s financial support to these groups.