Donald Trump's administration has imposed new sanctions on Iran following this week's missile strikes on airbases housing US troops in Iraq.
Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin the new sanctions will target eight senior Iranian officials, as well as companies in the steel and other sectors.
Mr Mnuchin said President Trump will issue an executive order imposing sanctions on anyone involved in the Iranian textile, construction, manufacturing or mining sectors.
The administration already reinstated all the US sanctions that were eased under the 2015 nuclear deal.
It comes amid heightened tensions between the two nations after President Trump ordered an airstrike to kill Iranian military leader Qasem Soleimani.
Iran subsequently retaliated by attacking the Iraqi base - though know troops are believed to have been hurt in the reactionary strike.
President Trump has said his nation would "embrace peace" with any nation that seeks it amid the tensions - though has threatened a severe response should American citizens be targeted further by Iran.
He said yesterday the attack on Soleimani was sanctioned due to intelligence of a plot to "blow up" a US embassy.
The US leader accused Soleimani of organising violent protests by Iran-backed groups at the US Embassy in Baghdad earlier this month and said if he had not sent US troops to protect the embassy the demonstrators might have broken in and killed Americans or taken them hostage.
It comes as Iran was accused of having shot down a Ukrainian airliner, in a crash which killed 176 people.
Iran denies this though Western nations have suggested intelligence points to a missile having been fired at it - though add that it could have been shot unintentionally.
