US says 'will not hesitate' to tighten sanctions on Iran

WASHINGTON

U.S. Treasury Secretary Janet Yellen warned in prepared remarks Tuesday of further sanctions targeting Iran, following its unprecedented attack on Israel over the weekend.

"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," according to excerpts of Yellen's speech ahead of the spring meetings of the International Monetary Fund and World Bank in Washington this week.

Months of war between Israel and the Palestinian militant group Hamas in Gaza have triggered violence in the region involving Iranian proxies and allies who say they act in support of Palestinians in the Gaza Strip.

But tensions have soared even higher with Tehran's first direct assault on Israel, in retaliation for a deadly April 1 strike on Iran's consulate in Damascus.

The attack has prompted appeals for de-escalation by world leaders fearing wider conflict.

In prepared remarks released Tuesday ahead of a press briefing, Yellen said U.S. authorities have been using economic tools to counter Iran's activity, taking aim at its drone and missile programs, as well as its financing of groups like Hamas.

"From this weekend's attack to the Houthi attacks in the Red Sea, Iran's actions threaten the region's stability and could cause economic spillovers," she warned.

Yellen on Tuesday is also set to outline U.S. priorities during the spring meetings, including deepening ties with allies and partners.

Later in the morning, the Treasury chief convenes a fourth meeting of the U.S.-China financial and economic working groups, aimed in part at exchanging data to make headway on issues like excess industrial capacity.

And with Russia's invasion of Ukraine entering a third year, Yellen added in the prepared remarks that the United States is furthering work with global partners to "unlock the economic value of immobilized Russian sovereign assets and ensure that Russia pays for the damage it has caused."

She urged the House of Representatives to give the green light to further support for Ukraine, adding that the United States has in recent times unveiled sanctions targeting Russia as well since the war.

This includes on its National Payment Card System and on Russian regional financial institutions.

On Monday, a senior Treasury official told reporters that the spring meetings bring an "opportunity" for progress in tapping immobilized Russian assets to aid Ukraine, although they did not commit to specific outcomes.