In a Thursday meeting between U.S. and Israeli officials, the two sides discussed the attack by Iran as well as the Israeli military's plans for an operation in Rafah in Gaza, according to the White House.

During the meeting, the "U.S. participants expressed concerns with various courses of action in Rafah," according to a White House readout.

"Israeli participants agreed to take these concerns into account and to have further follow up discussions between experts, overseen by the U.S.-Israel Strategic Consultative Group," and the officials agreed to meet again "soon," according to the White House.

National security adviser Jake Sullivan convened the meeting and the Israeli side was led by Minister for Strategic Affairs Ron Dermer and national security adviser Tzachi Hanegbi.

Israel has made significant progress in preparations for the evacuation of around 1 million civilians from Rafah ahead of the Israeli military’s impending operation in the southern Gaza city, according to an Israeli source.

Preparations have been ongoing for over a month, including repairing water and sewage pipes and amassing thousands of tents, the source said.

There are around 1.5 million Palestinians estimated to be in the Khan Younis and Rafah areas in southern Gaza. It’s believed around 1 million people would evacuate north. The evacuation process, which could take weeks, would not start until after Passover.

State Department principal deputy spokesperson Vedant Patel stressed to reporters that "any kind of forced relocation or displacement of the Palestinian people within Gaza cannot and should not be part of any plan or an operation."

-ABC News’ Matt Gutman and Anne Flaherty

U.S. and Israeli officials will hold a high-level, virtual meeting on Thursday about alternative plans for an Israeli military operation in Rafah, a White House official confirmed to ABC News.

The official said that it will be a secure video meeting that will follow up on discussions from earlier this month. National security adviser Jake Sullivan will lead the meeting for the U.S. side, the official said.

The meeting was first reported by Axios.

"The main purpose really is to talk about Rafah ... and also share our continued concerns over a major ground offensive there," White House National Security Communications Adviser John Kirby said.

-ABC News’ Michelle Stoddart

The U.S. is sanctioning two groups and 16 people it says enabled Iran's drone production following Iran's attack on Israel last weekend.

"Today, in coordination with the United Kingdom and in consultation with partners and allies, we are taking swift and decisive action to respond to Iran’s unprecedented attack on Israel," Treasury Secretary Janet Yellen said. "We’re using Treasury’s economic tools to degrade and disrupt key aspects of Iran’s malign activity, including its UAV program and the revenue the regime generates to support its terrorism."

The Treasury Department said it’s sanctioning Khuzestan Steel Company, Iran's largest steel producer. The Treasury Department said Iran's metals sector generates "several billion dollars in revenue annually."

The U.S. is also targeting the Iranian carmaker Bahman Group for its role in making vehicles used by the Islamic Revolutionary Guard Corps for military operations.

The sanctions also target people who work for Iran-based drone manufacturers, including executives of the Mado Company, which the U.S. says produced drone engines used in Iran's Shahed UAVs. The U.S. also sanctioned members of the IRGC who it says help supply proxy groups, like the Houthis in Yemen, with drones that have attacked U.S. service members in the Red Sea.

Yellen added that the U.S. would "continue to deploy" sanctions to counter any further action by Iran, with the goal of making it harder and more expensive for Iran to undertake destabilizing actions.

President Joe Biden said in a statement that these sanctions are "holding Iran accountable."

Biden emphasized that the sanctions are in coordination with the international community, and he said the other G7 countries are committed to increasing "economic pressure" on Iran alongside the U.S.

Biden said he has instructed his team to continue to impose sanctions that will degrade Iran's military capabilities.

Biden also reiterated his ironclad support for Israel, and issued a warning to Iran and those who "enable" Iran's attacks.

"We are committed to the security of our personnel and partners in the region," Biden said. "And we will not hesitate to take all necessary action to hold you accountable."

-ABC News’ Michelle Stoddart and Justin Gomez