U.S. slaps new sanctions on Iran over Israel attack

By Robert Schroeder

Executives of drone maker are targeted

The Biden administration on Thursday slapped new sanctions on people and entities associated with Iran's drone program in response to Tehran's attack on Israel on April 13.

As foreshadowed by Treasury Secretary Janet Yellen earlier this week, the U.S. is targeting 16 individuals and two entities that enable Iran's drone production, including production of the engine types that power the drones that were used in the attack on Israel.

"We will continue to deploy our sanctions authority to counter Iran with further actions in the days and weeks ahead," Yellen said in a statement on Thursday.

The U.K. at the same time is imposing sanctions targeting several Iranian military organizations, individuals and entities involved in Iran's drone and ballistic-missile industries, the Treasury Department said.

The U.S. said it is also punishing five companies associated with the Iranian steel industry and three subsidiaries of an Iranian automaker.

Israel has not yet said how it will respond to the Iranian attack. President Joe Biden has urged Israel to exercise restraint after last weekend's attack.

Meanwhile, as MarketWatch's Joseph Adinolfi reports, crude-oil prices (CL00) are on track to fall for a second straight week amid signs that demand isn't growing as quickly as experts had expected.

"The threat of intensifying direct hostilities between Israel and Iran has been shrugged off by traders, although this should continue to put a floor under prices. Instead, the focus is on renewed concerns for demand growth for the rest of this year, and beyond," David Morrison, senior market analyst at Trade Nation, said in emailed commentary.

-Robert Schroeder

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04-18-24 1016ET

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