President Trump said on Thursday that "nothing is off the table" in the U.S.'s response to Iran after the country engaged in ballistic missile testing, violating a UN Security Council resolution. Iran is officially "on notice" for its belligerence, National Security Adviser Michael Flynn said, and could even face military action.

The first threat the White House looks to follow through on, however, is sanctions. That response could come as early as Friday, according to reports.

The Trump administration is set to impose fresh sanctions on dozens of Iranian entities for their alleged role in missile development and terrorism—in a move likely to escalate U.S. tensions with Tehran—according to people involved in the deliberations. The penalties on these Iranian companies, individuals and military organizations could be announced as early as Friday, said these individuals.

Should Trump go forward with sanctions, the White House has insisted it would not violate the Iranian nuclear deal signed during the Obama administration. Trump is expected to enforce the sanctions via executive order.