Tit for tat is generally "you hit me; I hit you". "You hit me; I hit that guy over there" isn't it.
The "neutral" community should act to force Iran to confine itself to dealing with the US and Israel and their stuff. It's an elementary requirement of any "rules-based order" that the community enforce rules, equally, even when it rather would not. Iran isn't in the same league as trying to force the US, or Russia, or China to behave. This sort of abandonment in the face of egregious misconduct (for decades, no less) is why some people started ignoring things like "IRBO" and doing things their own way.