U.S. Treasury Secretary Janet Yellen is preparing fresh sanctions on Iran in response to Iran's attack on Israel, Axios reported on Tuesday, citing a copy of her remarks.

"Treasury will not hesitate to work with our allies to use our sanctions authority to continue disrupting the Iranian regime's malign and destabilizing activity," Yellen is prepared to say Tuesday, as per the Axios report.

"The attack by Iran and its proxies underscores the importance of Treasury's work to use our economic tools to counter Iran's malign activity," she will further say, Axios reported.

Yellen said previously that Iran's actions threatened stability in the Middle East and could cause economic spillovers, adding that the U.S. would use sanctions and work with allies. REUTERS