France has frozen the assets of two Iranian intelligence officials in response to an alleged aborted bombing attempt outside Paris in June, the French Foreign Ministry said Tuesday.
The French government said it also froze the assets of Iran's Ministry of Security and Intelligence.
France's interior, foreign and economic ministries said in a joint statement the action reflects the government's determination to combat terrorism.
"In taking this decision, France underlines its determination to fight against terrorism in all its forms, particularly on its own territory," the statement said.
The moves threaten to trigger diplomatic tension between the two countries as France tries to keep Iran in the 2015 agreement to limit its nuclear program and amid widespread unrest in the Middle East.
"This extremely serious act envisaged on our territory could not go without a response," the French government said.
The planned attack was supposed to have targeted a meeting of thousands of Iranian opposition supporters. It was also attended by high-ranking U.S. officials, including close allies of President Donald Trump.
France subjected Iranian diplomat Assadollah Asadi and another man identified as Saeid Hashemi Moghadam to six-month asset freezes. Asadi and five others were arrested by European police. Asadi is set to be extradited from Germany to Belgium for prosecution.
Iran has denied any role in the foiled attack and accuses the People's Mujahedeen of Iran of coordinating the plot to discredit Iranian President Hassan Rouhani.