Treasury's Office of Foreign Assets Control sanctioned the 15 Khordad Foundation, which issued a multimillion-dollar bounty for the killing of Rushdie. He wrote ``The Satanic Verses,'' which some Muslims consider blasphemous.

Rushdie's agent says the author has lost sight in one eye and the use of a hand as he recovers from an attack by a man who rushed the stage at the event in western New York.

``The United States will not waiver in its determination to stand up to threats posed by Iranian authorities against the universal rights of freedom of expression, freedom of religion or belief, and freedom of the press,'' said Brian Nelson, Treasury's undersecretary for terrorism and financial intelligence.

``This act of violence, which has been praised by the Iranian regime, is appalling. We all hope for Salman Rushdie's speedy recovery following the attack on his life.''