US to issue new Iran sanctions following ballistic missile test

The Trump administration is preparing to levy new sanctions on Iran, US officials said on Thursday, in the first punitive action since the White House put Iran "on notice" after it test-fired a ballistic missile.

Up to two dozen Iranian individuals, companies and possibly government agencies could be penalised as part of the move, expected as early as Friday, the officials said. Earlier on Thursday, the Trump administration had said that “nothing is off the table.”

The new sanctions, which are being taken under existing executive orders covering terrorism and weapons of mass destruction, may mark the opening shot in a more aggressive policy against Iran that Trump promised during the 2016 presidential campaign, the sources said.

They added, however, that the package was formulated in a way that would not violate the 2015 Iran nuclear deal negotiated between Iran and six world powers including Trump’s predecessor, Barack Obama.

"This is fully consistent with the Obama administration's commitment to Congress that the nuclear deal does not preclude the use of non-nuclear sanctions," Mark Dubowitz, CEO of the Foundation for Defense of Democracies said, which advocates for a hardline US position on Iran.

The impending sanctions come the same week that Trump and his aides issued cryptic warnings about potential retaliation against Iran for testing a ballistic missile and for supporting Shiite rebels in Yemen known as the Houthis.

The White House signalled a tougher stance toward Iran on Wednesday when Michael Flynn, Trump's national security adviser, said he was putting Iran "on notice" after the missile test and senior US officials said the administration was reviewing how to respond.