Iran is deploying precision missiles in Yemen that are capable of hitting Israel, Prime Minister Benjamin Netanyahu said Monday at a press conference with US Treasury Secretary Steven Mnuchin.
According to Netanyahu, Tehran's ambition is to obtain the capacity to launch a precision strike on any target in the Middle East.
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On Monday, Mnuchin pledged to increase economic sanctions against Iran. He says the administration's "maximum pressure campaign" is halting Iranian aggression.
Mnuchin met Monday in Jerusalem with Netanyahu, who called on Washington to impose additional sanctions to stop what he called Iran's "plunge for everything" in the Middle East.
At a joint press conference, Netanyahu said Iran's ability to project power in the region "is diminished to the extent that you can tighten your sanctions and make the availability of cash more difficult for them."
Mnuchin is heading a delegation to the Middle East and India to discuss economic ties and counterterrorism initiatives. He is joined by US President Donald Trump's senior adviser and son-in-law Jared Kushner, who was to meet with Netanyahu and his key rival, Blue and White party leader Benny Gantz.
Mnuchin says American sanctions aim to force Iran to stop "their bad activities and exporting terrorism, looking to create nuclear capabilities, and missiles."
Earlier Monday, the International Monetary Fund reported that Iran would need oil priced at $194.6 a barrel to balance its budget next year.
Hurt by tighter US sanctions, Iran – a key member of the Organization of the Petroleum Exporting Countries (OPEC) – is expected to have a fiscal deficit of 4.5% this year and 5.1% next year, the fund said in a report on Monday.
On Friday, international benchmark Brent crude closed trading at just above $62 a barrel.
Iran saw its oil revenues surge after a 2015 nuclear pact agreed with six major powers ended a sanctions regime imposed three years earlier over its disputed nuclear program.
Iran's economy is expected to shrink by 9.5% this year, compared to a prior estimate of a 6% contraction, the IMF has said, but real gross domestic product (GDP) growth is expected to be flat next year.
Parts of this article were originally published by i24NEWS
