EU to impose new sanctions on Iran drone, missile producers

European Union leaders agreed Wednesday to impose new sanctions on Iran's drone and missile producers over Tehran's unprecedented weekend attack on Israel, EU chief Charles Michel said.

"We have decided to put in place sanctions against Iran, it is a clear signal that we wanted to send," the European Council president said at an EU summit in Brussels.

"The idea is to target the companies that are needed for the drones, for the missiles."

Iran launched an unprecedented drone and missile onslaught over the weekend against Israel, which caused little damage after most of the projectiles were intercepted.

Tehran's first-ever direct assault on Israeli soil came in response to a deadly attack on the Iranian consulate in Damascus widely blamed on Israel.

Israel's Prime Minister Benjamin Netanyahu said his country will decide how to respond to Iran's attack as global powers called for restraint to avoid escalation.

The EU leaders in their statement from the summit urged "all parties to exercise the utmost restraint and to refrain from any action that may increase tensions in the region."

The EU has already imposed sanctions on Iran over its supply of drones to Russia for its war in Ukraine, but they have had little effect on cutting the ties between Tehran and Moscow.