US Hits Iran with New Sanctions Aimed at Cutting War Funding
The Trump administration has imposed fresh sanctions on Iran as part of its 'Operation Economic Outcast' aimed at cutting Tehran's funding for war, missile construction, cyberattacks, and the Islamic Revolutionary Guard Corps (IRGC). The program targets Iran's rail and automotive conglomerates and international suppliers to these sectors.
The US has blocked Iranian oil going through the Strait of Hormuz, forcing Tehran to rely more on autos and rail for transporting petroleum, fertilizer, chemicals, and other goods. Thursday's sanctions target those alternatives, according to the Treasury Department.
The two companies representing over 90% of Iran's domestic auto market, Iran Khodro Company (IKCO) and SAIPA Iranian Automobile Manufacturing Company (SAIPA), have been designated by the Treasury. The state-owned Islamic Republic of Iran Railway Company, Raja Passenger Trains Company, and Sherkat-E Rah Ahan-E Khamle-O-Naghle (Railway Transportation Company) are also targeted.
Treasury Secretary Scott Bessent said the action 'directly targets Iran's enablers and lays the groundwork for the United States and our partners to drain the regime's revenue once and for all.'