EU leaders back new Iran sanctions after attack on Israel

European Union leaders decided on Wednesday to step up sanctions against Iran after Tehran's missile and drone attack on Israel left world powers scrambling to prevent a wider conflict in the Middle East.

The summit in Brussels is the first meeting of the EU's 27 national leaders since Saturday's attack, more than six months into the war on Gaza.

Israel has signalled it will retaliate but has not said how EU leaders condemned the Iranian attack, reaffirmed their commitment to Israel's security and called on all sides to prevent more tensions, including in Lebanon.

"We feel it's very important to do everything to isolate Iran," said summit chairman Charles Michel, adding the new sanctions against the Islamic Republic would target companies involved in the production of drones and missiles.

German Chancellor Olaf Scholz said it was important that Israel "does not respond with a massive attack of its own."

Italy spoke separately ahead of G7 talks in favour of sanctions against arms suppliers linked to the attack against Israel, as well as those behind attacks on ships in the Red Sea.

Iran launched its assault in response to a 1 April strike on its embassy in Damascus, which it blamed on Israel. Tel Aviv started its broader military offensive in Gaza after the Hamas attacks on 7 October.

Israel and Ukraine

EU foreign ministers are due to continue the sanctions work on Monday as the United States and its Western allies hope new steps against Iran will help limit any Israeli retaliation.

The EU already has multiple programmes that target Iran for human rights abuses, the proliferation of weapons of mass destruction, and Tehran's support for Russia's war in Ukraine.

Germany, France and several EU states are looking at expanding a scheme that seeks to curb the supply of Iranian drones to Russia to include the provision of missiles and cover deliveries to Iranian proxies in the Middle East.

Belgium backed introducing sanctions against Iran's Revolutionary Guard Corps, but Scholz said that further legal checks were required. The bloc's top diplomat has said that could only happen if a national authority in the EU found that the group had been involved in terrorist activity.

Analysts say Iran is unlikely to face more severe economic punishment because of worries about boosting oil prices and angering top buyer China.

(Reuters)