Treasury Secretary Janet Yellen was preparing new sanctions to be imposed on Iran in response to its unprecedented attack on Israel, Axios reported on Tuesday.
"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 was preparing to say according to the report.
"The attack by Iran and its proxies underscores the importance of Treasury's work to use our economic tools to counter Iran's malign activity."
Yellen said previously that Iran's actions threatened stability in the Middle East and could cause economic spillovers, adding that the U.S. would use sanctions and work with allies.
Iran was already suffering an economic crisis with inflation reaching 40% and the local currency falling against the U.S. dollar.