European Union leaders have agreed to increase sanctions on Iran after its missile and drone attack on Israel. The move is an attempt to limit any Israeli retaliation and prevent a wider conflict in the Middle East as the war in Gaza continues.

Meeting Wednesday for the first time since Iran’s attack on Israel, the EU’s 27 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 chair Charles Michel.

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

Israel has signalled it will retaliate but has not said how.

New sanctions

The new sanctions will target companies involved in the production of drones and missiles.

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.

Several EU countries, France and Germany, are considering expanding an existing 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.