The US government, in concert with allies, is imposing sanctions on Iranian steel interests and downstream machinery customers potentially linked to the 13 April attack on Israel, Kallanish learns from statements from the US Treasury Department and White House.

The new sanctions, announced Thursday, also target companies in Dubai and Europe who supply steelmaking materials to the Iranian producers.

Treasury’s Office of Foreign Assets Control is "designating five companies in multiple jurisdictions providing component materials for steel production to Iran’s Khouzestan Steel Company (KSC), one of Iran’s largest steel producers, or purchasing KSC’s finished steel products,” Treasury says in its statement. “Iran’s metals sector generates the equivalent of several billion dollars in revenue annually, with the majority coming from steel exports.”

Treasury is targeting entities involved in Iran's production of unmanned aerial vehicles, i.e. drones. Also in the crosshairs are companies providing component materials for steel production and three subsidiaries of Iranian automaker Bahman Group.

These sanctions are designed to restrict Iran’s destabilising military programs, the US officials says. They are pursuant to multiple executive orders, including one that imposes sanctions with respect to the iron, steel, aluminium and copper sectors of Iran.

"The sanctions target leaders and entities connected to the Islamic Revolutionary Guard Corps, Iran’s Defense Ministry, and the Iranian government’s missile and drone program that enabled this brazen assault,” says the White House statement.

Sanctions issued for companies linked to KSC include Dubai-based PSI DMCC, which helps source parts and materials for steel production, according to Treasury. Two others are European-registered Kara Industrial Trading GmbH who helps source parts and facilitate exports, and Good Run Limited for involvement selling electrodes.

Also included in the sanctions is Hong Kong-based Magellanic Phoenix Marine and Trading Limited for its purchases of several tens of millions of dollars’ worth of steel products, including steel slab, from KSC since 2022. Another target is Turkey-based HSF Dis Ticaret Limited Sirketi, which purchased several tens of millions of dollars’ worth of steel products from KSC in 2022-23, the department states. 

“Let it be clear to all those who enable or support Iran’s attacks: The United States is committed to Israel’s security. We are committed to the security of our personnel and partners in the region,” warns the White House statement.