They are steely-eyed (7)

I believe the answer is:

needles

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'they' is the definition.
Both the answer and definition are plural nouns.
Perhaps they are linked in a way I don't understand?

I cannot understand how the rest of the clue works.

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(Other definitions for needles that I've seen before include "nettles" , "Teases or provokes with knitting implements" , "Annoys, pointers" , "Annoys the pointed implements?" , "Christmas tree leaves" .)

I've seen this clue in The Globe and Mail.

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