US: Hackers in Iran responsible for cyberattacks

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He said Panetta's remarks were an important step by the U.S. because the Iranian cyberthreat "is a new dimension in 30 years of intermittent conflict with Iran for which we are ill-prepared. It's really important to put them on notice."

The cyberattacks hit the Saudi Arabian state oil company Aramco and Qatari natural gas producer RasGas using a virus, known as Shamoon, which can spread through networked computers and ultimately wipes out files by overwriting them.

Senior defense officials said the information was declassified so that Panetta could make the public remarks. The officials added that the Pentagon is particularly concerned about the growing Iranian cyber capabilities, as well as the often discussed threats from China and Russia. The two officials spoke on condition of anonymity because they were not authorized to discuss the cyberthreats publicly.

In his speech, Panetta said the Shamoon virus replaced crucial system files at Aramco with the image of a burning U.S. flag, and also overwrote all data on the machine, rendering more than 30,000 computers useless and forcing them to be replaced. He said the Qatar attack was similar.

Panetta offered no new details on the Pentagon's growing cyber capabilities or the military rules of engagement the department is developing to guide its use of computer-based attacks when the U.S. is threatened.

He said the department is investing more than $3 billion a year in cybersecurity to beef up its ability to defend against and counter cyberthreats, including investment in U.S. Cyber Command. And the Pentagon is honing its policies so that any actions comply with the law of armed conflict.

"Our mission is to defend the nation. We defend. We deter. And if called upon, we take decisive action to protect our citizens," he said.

He added, however, that the Defense Department will not monitor American citizen's personal computers, or provide for the day-to-day security of private or commercial networks.

Panetta used the Persian Gulf attacks in his remarks as a warning to business community that it must embrace stalled legislation that would encourage companies to meet certain cybersecurity standards. And he is endorsing a planned move by President Barack Obama to use his executive powers to put some of those programs, including voluntary standards, in place until Congress acts.

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